Posted by Dave T on April 29, 1999 at 23:10:08:
In my area, for lending purposes, the bank puts 2-4 unit buildings in the same category as single family homes. Under residential property lending guidelines, the bank will probably lend 80-90% of the purchase price or appraised value whichever is less under a conforming loan program.
For an in-house loan (or non-conforming loan), each bank has different rules on the percentage of the purchase they will finance, interest rate, and points.
In some instances you may be allowed to use 75% of the projected net operating income from the non-owner occupied units as income to qualify for the loan. Projected income subject to appraisal verification.