Banks requested 15% down for 3-units. Is that a Fannie Mae voilation?

[Olga Burninova]

Hello!

I'm looking for guidance/advice. 

I've applied for a conventional loan: 3 units, owner occupied, NJ, 5% down.

I have enough W2 income to cover the loan and additionally, there are two units rented already. 

Several banks said I have to put a 15% downpayment. 

Does it violate Fannie Mae guidelines? Are these guidelines enforceable? Or is it the bank's discretional decision to follow/not to follow FM guidelines? 

Thanks for any insights/suggestions in advance,

[Matt Devincenzo]

It's an overlay...the guidelines are minimum standards for a conventional loan, it doesn't mean that a lender has to give you those loan terms. It may be worth asking why they say you need 15% if the guidelines allow as low as 5%? It may be there is another guideline that is shifting the math on the loan, or that the secondary market has no appetite currently for the 5% DP loans. That's often part of the equation, if the secondary market isn't/won't be buying the loan the lender may not offer those terms because they don't want to hold it on their books.