5% Down Conventional Loans for 2-4 unit Multifamily

[Twana Rasoul]

Fannie Mae is coming out with new guidelines to allow 5% down payment on 2-4 unit multi-famiy (Owner-Occupied)...This is huge news at least for an area like San Diego where FHA (3.5% down) can't be used for 3 and 4 unit properties due to self sufficiency rule. This conventional program doesn't seem like it will have that rule. I'm sure there will be some limits to the program but still an exciting option to allow for low money down multifamily purchases. This program is supposed to launch Nov 18. Would have been more exciting if this came out before rates went through the roof but I guess theres never a perfect time for anything...anyway, just sharing for all my multifamily enthusiasts.

[Landon Hoon]

@Twana Rasoul thanks for sharing! Now after closing many deals on this new Fannie Mae program I can confirm it's great and in my opinion the best house hacking product out there. 

In addition to no self-sufficiency test, it also allows for a non-occupying co-signer on a 2-4 unit while keeping down payment at 5%. This is awesome, because FHA shoots up the down payment in this scenario.

Twana if you are looking for similar minded people to partner with in San Diego on 2-4 units, Randa Dehaan is great to connect with from the lending side.