Conforming 5% Down Loans for MFH - House Hacking

[Jeff Dulla]

I see a lot of general terms for programs tossed around on here - Private Money, Hard Money, Portfolio Loans, etc. The vast majority without any concrete information. In response, thousands of people on here are wondering around in search of these mystical Hard Money loans that they cannot find. 

Many of these overnight solutions, get a huge loan with no income type loans are exactly as they sound, too good to be true. So I wanted to bring up a Conforming product that does exist and could be useful. Freddie has a 5% down product that works for MFH (yes, even three and four units). In fact the rates and PMI are actually better than many normal conforming loans.

You do have to occupy the home. But it sounds like a potentially great way to get started. You also have to take a homebuyer education class and landlord education class prior to the note date. 

Most any mortgage banker or broker you know should have access to this program. Hopefully this is a much more realistic solution for many of you out there.