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FANNIE MAE 5% Down Payment ON 2 TO 4 UNIT
Breaking News from Fannie Mae and Freddie Mac. Effective immediately homebuyers can purchase 2 to 4 unit multi family homes with 5% down payment. Before today’s Breaking News owner occupant primary multiunit homebuyers needed 15% down payment. Private mortgage insurance is required and we don’t yet know what the PMI factor is as of today. Just wanted to share this Breaking News with our forum viewers .
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2 Replies
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This is great news, Max. Is there self-sufficiency test like FHA loans for two to four unit multi family housing?
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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.
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