Freddie Mac Home Possible - 5% Down (2-4 units) - Renovation Loan!

[Jesse Byrer]

I want to share this program with the group for those that are not aware of it. Freddie Mac has a program that allows only 5% down on 2-4 units. This is a huge opportunity for savvy home buyers because you can get into a larger building (2-4 units) with less money down. We just got the ability to use this program in conjunction with our renovation loan (Home Choice). This is a huge opportunity as a regular conventional renovation loan requires 15% down on 2-units and 25% down on 3-4 units. You might be asking yourself, why not FHA 203K... as it only asks for 3.5% down. That's true, but the loan limits are lower for FHA, the MI is higher and it is there for life (if you only put down 3.5%). Not to mention, FHA has a self-sufficiency test you must pass on a 3-4 unit. This can be very difficult to pass in states with high property taxes... not to mention the current high rate and high home price market we're experiencing. I'm a firm believer that everyone should have an investor mindset and this product really helps those wanting to get in the RE Investing Game! While this is only for owner occupants the borrower can get gift funds from a parent (must have 3% of their own funds). Think RE Investors wanting to help getting their kids get off to a great start:-) Good luck to all!