Financing in Cranford>Question Details

Chris, Home Buyer in New York, NY

Will mortgage rate for Owner Occupied two units higher than Single Family? I am a first time home buyer and the home will be my primary resident.

Asked by Chris, New York, NY Wed Jan 6, 2010

I am currently going through a deal for a two units property, and I will be residing in one of them as my primary resident. There are three leaders I am working with to secret a loan and two tell me different thing after I told them that it will be an owner occupied two unit.

The broker from my local bank says the rate is same as single family but there is 1 points in fee

Mortgage Broker A simply quoted a much higher rate (this broker is the most competitive when he quoted for the single family)

Mortgage broker B say the rate is same as single family.

I try to get some references online to determine who is correct but cannot seem to find any. Can someone point me to the right direction?

Of course, I am open to other leader as long as they are competitive. I have excellent credit if you are wondering.

Any help will be appreciated.

Thanks in advanced.


Help the community by answering this question:



The first two answers below are correct. For Conventional, you'll eat about a point for the same rate on a 2-fam as a single. You can take a no-point loan as long as you know the rate will be higher. For FHA there won't be a differential.

Good luck with your purchase.

Kind regards,

Jason Diperstein
E Mortgage Management
800-793-9633 x156
0 votes Thank Flag Link Thu Jan 7, 2010
Hi Chris,

There is no difference in rates between SFR and 2 unit owner-occupied. You should be able to get a really great rate. I think buying a 2 unit is a very smart way to go.
0 votes Thank Flag Link Wed Jan 6, 2010

It is all very simple, so I'll clear up all the confusion. There are conventional loans and FHA loans (among others).

With a conventional loan, you have two options when buying a two unit building:

1. Pay points.

2. Take a higher rate instead of paying the points.

With an FHA loan, the rate is the same for a two family as a single family.

Feel free to contact me.

Hope this helps.

Good luck.
0 votes Thank Flag Link Wed Jan 6, 2010
Bank and A are correct. There is a point 1 pt adjustment for Fannie mae 2 unit properties. Broker A is just raising the rate to compensate.

Depending on how much you plan on putting as a down payment, you may want to go with an FHA loan, as FHA has no adjustment for 2 unit properties. Feel free to contact me at 908 531 6170 or or
0 votes Thank Flag Link Wed Jan 6, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer