Multi-Unit Property Financing

After seeing the benefits of owning a home, people often start to think about expanding  into multi-unit, income-producing properties.

The good news is that the Gulf Coast, and New Orleans metro area in particular, offers a number of opportunities for rental properties, especially if you’re willing to renovate a bit.

Multi-unit properties are typically either two units (duplex), or 3-4 units. Properties with more than 4 units are considered commercial and fall under different lending categories.

Gulf Coast Bank Home Loans offers multi-unit property loans in areas we serve including metro New Orleans & Baton Rouge as well as Florida & Texas.

Benefits of Owning a Multi-Family Property

There are a number of benefits of owning multi-family property, but perhaps the most attractive one is the income opportunities they present.

For instance, if you purchased a single-family home as a rental property, your rental income would undoubtedly provide some income. But many investors report that their rental income barely covers their mortgage and insurance payments, let alone necessary repairs or property management fees.

Multi-family properties, on the other hand, offer the opportunity to make significantly more rental income on a given property, making it easier to earn income from your property.

Multi-Unit Financing Options

The good news is that we offer conventional conforming loans for multi-unit properties. However, your home loan options will depend on whether or not you plan to live in the property.

If you will live in the property, you may be able to purchase a property with as little as 15-20% down depending on whether the property is a duplex, or 3-4 units.

If you are purchasing the property strictly as investment/rental and don't plan to live there, 25% down is usually required.

Next Steps

You can spend a lot of time online reading about financing options for investment/rental property, but nothing beats an initial consultation with one of our loan officers.

Our local lenders understand the properties and market conditions in our neighborhoods and can help you get a better idea of your options based on your interests and goals.

Contact a loan officer today to get pre-qualified. You’ll be happy you did!