At Indigo Mortgage in New Mexico, we like to keep our borrowers educated on various topics. One subject that does not come up in common conversation for homeowners is multifamily mortgages. Here are a few facts you should know about multifamily mortgages.

Residential Multifamily properties are any residential property that is more than one unit. These properties are also known as two units, duplexes, or four-unit properties. Four-unit properties, in particular, are properties that are four units and are eligible for conventional residential mortgages (anything over four units is considered a commercial property). The easiest way to finance a multi-unit property is to keep the properties at four units or less.

Conventional financing is much more forgiving when it comes to financing these types of residences. The rates and terms are also much more favorable. Indigo Mortgage has been financing multifamily properties since we opened. Our team are experts in this field and can finance properties with up to four units with conventional mortgages. If more than four units are required, we have a commercial lending division that can easily handle those properties. We also have a great new product for financing multifamily properties: debt service loans. Debt service loans qualify borrowers based on the lease agreement and do not even look at the borrower’s income until they do so. The borrower should qualify if the ratio is at least one to one.

The Indigo Mortgage team has processed several multifamily mortgage loans. If you or a loved one are in the market for a multifamily property in New Mexico, reach out to us! Our experienced team will help you every step of the way.