MCQ Detailed View

Mortgages used to finance the purchase of townhouses, apartment buildings, and other residential properties with multiple housing units are called multifamily dwelling mortgages. These loans are different from single-family mortgages because they involve larger amounts, stricter underwriting standards, and often require higher down payments. Lenders view them as higher risk but also recognize them as income-generating properties since rent payments from multiple tenants can support loan repayment.