Multifamily Property – Buy with only 5% down payment!
Did you know that you can buy a multifamily property with only 5% down payment? If you live in one unit, and rent out the other units, you can use an owner occupied loan to purchase!
Loan Limits for Multifamily Properties
For properties that include more than one single-family residence, the 2026 San Diego loan limit is higher:
Duplex (a home divided into two residences): $1,599,375
Triplex (3 residences): $1,933,200
Quadriplex (4 residences): $2,402,625
5% Down Payment Examples
Here are some examples of how much down payment you need, for the maximum loan (2026, San Diego County):
Duplex – borrow up to $1,599,375 – $1,683,553 purchase price, $84,178 down payment
Triplex – borrow up to $1,933,200 – $2,034,947 purchase price, $101,747 down payment
Quadriplex – borrow up to $2,402,625 – $2,529,079 purchase price, $126,454 down payment
Use Rental Income to Qualify
You can use 75% of actual rent to add to your income qualification.
For example, if the property has a two tenants who pay $2,000 each, that’s:
$4000/month rent x 75% = $3,000 qualifying income
Income Qualification – Example
Let’s say you have $8,000/month gross income and a $500 car payment.
In general, your income qualification is about 45% of your gross income, minus any debt.
$8000 x 45% = $3600 minus $500 car payment = $3100 income minus debt
You can also use 75% of your rental income to qualify. In this example, the two renters of your future triplex pay $2,000/month each, or $4000/month total:
$4000 x 75% = $3000 rental income
$3100 + $3000 rental income = $6100/month total housing payment
Housing Payment Example
Quadriplex – $1,995,000 purchase price
5% down payment = $99,750
95% loan amount = $1,895,250 (falls within superconforming limits – non-jumbo)
Principal & 7.5% interest payment = $13,252 + $600 PMI + $2500 property tax and insurance = $16,352
$16,352 payment minus $9600 rental income = $6752/month payment. Similar to buying an $800,000 home, without the tax benefits of owning investment property.
Current rental income: $9600 x 75% = $7200 income towards qualification
How Do I Get Started?
The first thing to do is contact a lender to get preapproved. Then, you’ll be able to start searching for properties based on purchase price and monthly costs. As always, contact me with any questions.
