What Counts as a Multi-Family Property?

A multi-family property is any residential property with more than one separate living unit. Common examples include duplexes, triplexes, fourplexes, townhome-style rental buildings, and apartment complexes.

The type of loan often depends on the number of units. Properties with two to four units may sometimes qualify for residential-style financing, especially if the borrower plans to live in one unit. Properties with five or more units are usually treated as commercial real estate.

This difference matters because lenders review the loan differently. A small multi-family property may be evaluated partly like a home loan. A larger apartment building is usually judged more like a business, with heavy focus on rental income, expenses, occupancy, and property performance.

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