Exciting News: Fannie Mae Unveils 5% Down Payment Option for Multifamily Homes
Heith Mohler
Monday, October 9, 2023
Exciting News: Fannie Mae Unveils 5% Down Payment Option for Multifamily Homes
If you've been eyeing multifamily homes as an investment opportunity or a way to step into the world of homeownership, we've got some game-changing news for you. Fannie Mae has recently made a monumental policy shift. Starting the weekend after November 18, 2023, they're rolling out a brand new option for owner-occupied 2-, 3-, and 4-unit homes—a mere 5% down payment! This is a dramatic departure from the previous requirement of 15-25% down payments for duplexes, triplexes, and four-plexes.
For those eager to venture into multifamily real estate, this is a golden opportunity. Thanks to Fannie Mae's reduced down payment requirement, prospective owner-landlords can now make their dreams a reality.
Diverse Financing Options and Simplified Approvals for Multifamily Homes
This policy shift applies across the board, encompassing standard purchases, no-cash-out refinances, HomeReady, and HomeStyle Renovation loans for owner-occupied transactions. It opens doors for first-time buyers and individuals looking to alleviate the burden of high mortgage payments. Plus, Fannie Mae has set the maximum loan amount at $1,396,800 for these 2-4 unit properties, ensuring flexibility when it comes to larger and pricier multifamily homes.
The icing on the cake? Fannie Mae has waved goodbye to the FHA self-sufficiency test for 3-4 unit properties. This means fewer obstacles for buyers seeking pre-approval for these multifamily gems.
Seize the Moment with Fannie Mae's New Policy
For mortgage loan borrowers eager to take advantage of this exciting opportunity, the time to act is now. The changes will be implemented in Fannie Mae's system after November 18, 2023, so you have a window to prepare and gather all necessary documentation.
For owner-occupant landlords, this policy shift isn't just a game-changer; it's a life-changer. Smaller down payments mean more affordable mortgage payments. Moreover, you'll have the chance to tap into rental income from other units, all while building equity in your own property.
Fannie Mae's decision to lower down payment requirements for multifamily homes is a significant stride towards enhancing access to credit and affordable rental housing. With this progressive change, owning a multifamily property while generating rental income is within closer reach for mortgage loan borrowers than ever before. So, if you've been dreaming of owning a multifamily home, now is the time to turn that dream into a reality with Fannie Mae's groundbreaking 5% down payment option.
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