5% Down Conventional on 2-4 Unit Primary

[Raymond J. Rodrigues]

There’s a new exciting update that comes after the weekend of November 18th!

Conventional guidelines will change to allow 5% down payment, for primary residences, on 2-4 unit properties, instead of requiring 15-25% down payment. This helps a lot of people, because buyers will not be locked out with only being able to use an FHA loan. This is not the home possible income restricted loan that no one qualifies for.

There was a common issue when someone owned a primary residence already, that wanted to buy a multifamily with low down payment, which required FHA loans with 3.5% down, but had to qualify with both mortgage payments at the same time being counted against their debt to income ratio.

You were not allowed to lease out your departing primary residence, to offset your current mortgage, when purchasing a new home, unless you moved more than 100 miles away in order to qualify.

I hope this helps! If anyone has mortgage related questions, always happy to share my knowledge.