Filling the Home Possible house-hack gap for 2-4 units

[Jake Fugman]

Investors and agents - I came across a new program that should help fill in the gap left between FHA (with the restrictive self-sufficiency test and lower loan limits) and what Home Possible previously provided. Below are the details I gathered. This program is made for buyers with strong assets and residual income that just want to put less down - so not fit for people that would exhaust most of their savings on a down payment. Personally this fits the mold of a lot of my clients but not all house hackers.

· 10% down (90LTV) on owner occupied 2-4units

· $100k to $1.5mil loan amounts.

· Minimum credit score of 680, and minimum reserves of 6 months PITI on subject, and 2 months on all other real estate owned.

· Rates depend on the scenario/daily market of course, but ballpark today are in the mid-5’s. No MI is required, so when you factor that in the rate isn’t bad.


Has anyone else come across something similar or able to poke holes in something like this?