Thinking about buying a multifamily property in White Plains but not sure how to finance it? You are not alone. Lending options vary a lot depending on the building size, your plan to live there, and how fast you need to close. In this guide, you will learn the main loan types available in White Plains, what lenders look for, and how local incentives can strengthen your deal. Let’s dive in.
Start with property type and plan
Your financing path depends on the asset and your role.
- 2- to 4-unit, owner-occupied: Often uses residential-style mortgages. You live in one unit.
- 5+ units, investor or developer: Treated as commercial multifamily. Underwriting focuses on building income.
Knowing this up front helps you reach the right lenders faster and set realistic timelines.
Financing for 5+ unit buildings
HUD/FHA multifamily programs
HUD’s Section 223(f) (purchase or refinance of existing 5+ unit properties) and Section 221(d)(4) (new construction or substantial rehab) offer long fixed terms and high leverage. HUD highlights amortizations up to 35 years for 223(f) and up to 40 years for 221(d)(4), often with non-recourse structures and standard carve-outs. These loans are powerful but document heavy and can take months to close. Learn more in HUD’s overview of multifamily programs and this comparison of 223(f) vs. 221(d)(4).
- Best for: Long-term holders who want fixed-rate, high-leverage financing.
- Key trade-off: Speed. Expect a longer process compared to banks or agencies.
Agency small-balance loans (Freddie and Fannie)
Freddie Mac’s Small Balance Loan platform and Fannie Mae’s small-loan offerings target smaller apartment buildings, often 5 to 50 units. Typical features include up to 30-year amortizations, fixed or hybrid ARM structures, competitive pricing, and generally non-recourse execution. Freddie’s platform is built for workforce housing and has deep national capacity. See Freddie’s SBL program context here and an overview of typical terms here.
- Best for: Stabilized assets with clean financials and solid occupancy.
- Typical leverage: Often up to about 75 to 80 percent, subject to DSCR and market.
Banks, credit unions and portfolio lenders
Local and regional banks, credit unions, and portfolio lenders remain active in Westchester. Terms vary by lender, but commercial loans often land in the 65 to 75 percent LTV range with recourse more common than in agency debt. Relationship banking can help with speed and flexibility on smaller assets.
Financing for 2- to 4-unit owner-occupants
FHA for 2- to 4-unit properties
FHA insures owner-occupied 2- to 4-unit purchases, often with down payments as low as 3.5 percent for qualified borrowers. You must live in one unit. See HUD’s public guidance on 2- to 4-unit eligibility.
VA for eligible veterans
Eligible veterans can use VA financing to buy 2- to 4-unit properties if they occupy one unit. VA frequently allows very low or zero down payment, though lender overlays and county limits apply. Review a summary of VA loan basics.
Conventional owner-occupant options
Fannie Mae and Freddie Mac offer owner-occupied programs for 2- to 4-unit properties. Down payment and reserve rules are product and lender specific, and they can change. Ask lenders about current small down payment options, first-time buyer programs, and reserve requirements for 3- and 4-unit purchases.
Local incentives in White Plains that affect financing
Westchester County’s Industrial Development Agency (IDA) regularly supports multifamily projects in White Plains with mortgage recording tax exemptions, sales tax exemptions, and long-term PILOT agreements. These incentives can improve cash flow and strengthen lender underwriting when documented clearly. The County reported a significant year for IDA incentives and private investment, illustrating how active these tools are in the market. See the County’s press summary of IDA activity.
- What to do: If the property benefits from a PILOT or tax exemption, collect the agreements early and share them with your lender.
- State resources: NYS Homes and Community Renewal programs can layer into affordable or mixed-income deals. Ask counsel and your lender how these interact with your senior loan.
What lenders look for
Core underwriting metrics
- DSCR: Many agency deals underwrite near 1.25x DSCR for stabilized assets. Program specifics vary. See the 223(f) vs. 221(d)(4) overview.
- LTV: Agency small-balance loans often size to about 75 to 80 percent for qualified properties. See typical ranges here.
- Amortization: Agencies often allow 20 to 30 years, while HUD programs go longer. HUD outlines up to 35 to 40 years on insured loans here.
- Reserves: Lenders may require operating or capital reserves. Owner-occupied 3- and 4-unit loans often need months of PITI reserves. See a plain-language overview of reserve expectations here.
Documentation checklist
- Property: Rent roll, T-12 income and expenses, leases, capital improvements, and condition reports.
- Borrower: Personal financial statement, tax returns, entity documents, and experience.
- Third-party reports: Appraisal, environmental, title, insurance.
- Incentives: Any IDA PILOT, sales tax or mortgage tax exemptions, and regulatory agreements.
Timing and speed
HUD loans are document intensive and can take many months. Agency small-balance and bank loans often close in weeks to a few months if financials are clean. Bridge lenders can close in days to weeks at higher cost. See HUD’s timing discussion here and a plain-English look at bridge financing.
Short-term and creative options
- Bridge or hard money: Useful when you need to close fast, renovate, or stabilize before a refinance. Costs are higher, terms are shorter.
- Assumptions and seller financing: Many HUD-insured loans are assumable with approval, which can lower your entry rate if the existing loan is favorable. See the HUD loan comparison.
- Mezzanine or preferred equity: Fills the gap when senior LTV caps your proceeds. Most common in larger value-add or development deals.
How to choose the right path in White Plains
- You plan to live in a duplex or triplex: Compare FHA, VA (if eligible), and conventional owner-occupant options. Model the impact of reserves and projected rent.
- You are buying a stabilized 10- to 40-unit: Get quotes from agency small-balance lenders and relationship banks. Compare fixed vs. hybrid structures and prepayment.
- You are buying value-add or adaptive reuse: Price a bridge loan to close, then a HUD 223(f) or agency takeout after stabilization. Include any IDA incentives in your pro forma.
Key terms to know
- DSCR: Income relative to annual debt service. Higher is safer for lenders.
- LTV and LTC: Loan amount relative to value or project cost.
- Amortization: The schedule used to pay down principal.
- PILOT: Payment in lieu of taxes agreement that replaces standard taxes for a period.
- Assumability: The ability to take over an existing loan with lender or HUD approval.
- Prepayment penalty: A fee for paying off a loan before a set date.
Buying or selling multifamily in White Plains is a financing decision as much as a real estate decision. If you want a clear, cycle-aware plan to position your transaction and move with confidence, connect with Exodus Capital. Our boutique team brings institutional discipline with the speed and discretion mid-market owners expect.
FAQs
Can I use FHA or VA to buy a 2- to 4-unit in White Plains?
- Yes. FHA and VA allow owner-occupied 2- to 4-unit purchases, subject to occupancy, loan limits, and lender overlays. See FHA guidance here and VA basics here.
What is a typical down payment for a small multifamily in White Plains?
- Owner-occupied FHA can be as low as 3.5 percent for qualified buyers. Agency or bank loans for 5+ units often require 20 to 30 percent or more, depending on DSCR, condition, and business plan.
How do Westchester IDA incentives impact financing on White Plains deals?
- IDA mortgage tax and sales tax exemptions and PILOTs can improve cash flow and underwriting if the agreements are documented and shared early. See the County’s activity summary here.
How fast can HUD close compared to a bridge lender in White Plains?
- HUD multifamily loans often take months due to documentation and approvals. Bridge lenders can close in days to weeks at higher rates and fees. See HUD’s timing context here and an overview of bridge loans here.
What documents will a lender ask for on a 10-unit White Plains purchase?
- Expect rent roll, trailing 12 months of income and expenses, leases, capital expenditure history, borrower financials, appraisal, environmental, title, insurance, and any incentive or PILOT agreements.
