This is what I would do if starting in real estate today

[Randy Rodenhouse]

This is what I would do if starting out in real estate and wanted to buy my own home and start getting rental income and experience. Buy a 2-4 unit Multiunit using Fannie Mae new program of 5% down program which starts this week.

This marks a departure from the previous multiunit financing requirement of 15-25% down payments for duplexes, triplexes, and four-plexes.

This new option presents a great opportunity for individuals looking to invest in multifamily homes while also enjoying the benefits of homeownership. Prospective owner-landlords can now afford these properties more easily, thanks to the reduced down payment requirement by Fannie Mae.

This is an opportunity to reduce mortgage payments by leveraging rental income.

Things to remember:

1. There are closing costs ~2-4%

2. Must have 6 months of payments in reserve. You just have to show you have the money in your account.

3. Fannie Mae has a maximum loan amount of $1,396,800 for properties with two to four units.

[Mitesh Amin]

Do you know the DTI requirements for these loans 5% down? Is it still around 45-50%? The lower downpayment is great, but the DTI will go up and still make it difficult to afford most multifamily properties. Unless they allow future rental income to count towards the DTI calculation. Do you have experience with any good lenders that provide this loan?