That’s certainly great news for homebuyers wanting to acquire multi-family properties! Fannie Mae announced a new policy allowing multi-family homebuyers whose purchase is on 2—to 4-unit homes to pay 5% instead of 15%, which was the minimum delegated prior to this policy. The policy takes effect immediately.
Consider some of the pertinent elements of the new proposal:
Lower Down Payment: First-time homebuyers are expected to pay as little as 5% on purchasing owner-occupied 2 to 4-unit multi-family houses.
Loan Types: This change will affect standard purchase transactions, no-cash-out refinance transactions, HomeReady loans, and HomeStyle Renovation loans, all of which are owner-occupied.
Loan Limits: The loan limit for housing units of this type shall be $1,396,800.
Private Mortgage Insurance (PMI): PMI will be applicable. However, the exact PMI factor has yet to be disclosed.
This new option provides an excellent chance for people who want to invest in multi-family properties and enjoy the benefits of owning a house. It is worth a try if you are interested in such properties.