Multi-Family Loans in 2025: From Duplex Dreams to 24-Unit Realities
- David Marsh
- Jun 13
- 2 min read
So you want to be a landlord—but not just any landlord. You’re dreaming bigger than a spare-room sublet. You’re eyeing the triplex down the street, or maybe that 12-unit building with the cracked stucco and goldmine potential. Welcome to the multi-family game, where the stakes are higher but so are the rewards.
At Grand Funding, we help you skip the red tape and scale smart. Multi-family properties can be intimidating, but with the right loan—and a little strategic hand-holding—you’ll go from “I think I could” to “I own that.”
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What Counts as Multi-Family?
Let’s break it down:
• 2–4 units = Residential multi-family (you can use conventional loans!)
• 5+ units = Commercial multi-family (requires commercial financing)
Whether you’re house-hacking a duplex or going big with a mixed-use building in downtown Phoenix, your financing will depend on size, use, and your experience as a landlord. (Don’t worry—first-timers welcome.)
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Why Multi-Family Real Estate Still Reigns in 2025
Let’s just say passive income isn’t going out of style anytime soon:
• Rents are up 6–8% YOY in most metro markets (per Zillow’s 2025 Rental Trends)
• Vacancy rates are down, especially in the Southwest
• Inflation-resistant cash flow beats the stock market’s mood swings
• You can live in one unit and rent the rest — a strategy known as “house hacking” that’s still wildly underrated
Oh, and let’s not forget depreciation, appreciation, and all those beautiful tax deductions.
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Loan Options for Multi-Family Buyers
Depending on your property and plan, here’s what you’re working with:
• Conventional loans (up to 4 units, 15–25% down)
• FHA multifamily loans (as little as 3.5% down for owner-occupied 2–4 units)
• DSCR loans (based on rental income, not your W-2s—great for investors)
• Commercial mortgages (5+ units, longer underwriting process but more flexibility)
• Portfolio loans (for holding multiple properties under one roof—literally)
At Grand Funding, we match your goals with the right loan type, help you prep your documents, and get the deal closed fast. No stuffy suits. No mystery math.
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What You’ll Need
Let’s get real: Multi-family lenders want to see that you’ve got a plan, not just a Pinterest board.
• Proof of rental income or market comps
• Credit score of 660+ (but there’s wiggle room depending on the loan type)
• Down payment of 15–30%
• Reserves (aka backup funds for maintenance, vacancies, or espresso machines if you’re going the boutique Airbnb route)
We help you run the numbers, avoid the pitfalls, and maximize the return. Whether it’s your first building or your fifteenth, our team has your back.
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Bonus Tip: Live-in Landlords Get the Best Deals
If you’re willing to live in one of the units (even temporarily), you open yourself up to better terms, lower rates, and the magic of owner-occupant financing. Some clients even call it “sweat equity chic.”
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