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TitleFAQ: U.S. - HMDA definition of "multifamily"
AuthorKarl Zandi

How does the Home Mortgage Disclosure Act (HMDA) define a "multifamily" dwelling?


The Home Mortgage Disclosure Act (HMDA) defines a multifamily property as a residential structure that houses five or more families.  Conversely, a structure is classified as a one-to-four family property if it houses fewer than five families it also includes individual condominiums or cooperative units.

Mixed-use properties are classified by the financial institution to which the mortgage application was made, according to these rules:

1) It may use any reasonable standard to determine the primary use of the property, such as by square footage or by income generated.

2) It may select the applicable standard on a case-by-case basis.

For example, a certain apartment building contains a convenience store.  The lending institution determines that (a) most of the square footage is used for residential purposes and (b) the structure can house five or more families.  Hence, the property may be accurately reported as a multifamily dwelling.

Additional information regarding HMDA guidelines is available online: http://www.ffiec.gov/hmda/pdf/2010guide.pdf

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Home Mortgage Disclosure Act (HMDA)