5% Down Conventional On Multi Family! Absolute Game Changer...

[Alan Asriants]

Huge news in the mortgage industry this past week!

You can now use low down payment on Multi Family properties using a conventional loan.

Fannie Mae just allowed prospective homeowners-investors to purchase Multi Family Properties with as little as 5% down

This is a game changer on so many levels

1. You no longer need 15% down using a conventional mortgage to buy a Multi Family home. Now you can get all the benefits of a Conventional mortgage using only 5% on your next home

2. FHA isn't your only option now! Avoid PMI for life with a conventional mortgage. Even if you do have PMI because you are putting less than 20% down, your PMI will be usually cheaper per month than FHA

3. Adios self sufficiency test! If FHA was your only option because you were limited to low downpayment programs for Multi family, the prospective property you wanted to buy had to qualify for self sufficiency. This only applied to 3-4 unit properties, but it was a disaster for homebuyers, because practically no 3-4 unit property would pass this test. This limited low downpayment borrowers to Duplex only

4. Stronger offers! Competing with an FHA offer against others was extremely difficult. If you were in a multiple offer situation as an FHA Buyer, you had to give away your arm or your leg to get it accepted. And sometimes that wasn't enough. This loan program will open more doors for borrowers and increase their chances of getting their offer accepted.

5. Bye Bye PMI! Buyers using a conventional loan now have the ability to eventually get rid of their PMI on their property. Either by getting it reappraised and showing they have 20% or more equity in the home, or by making payments and creating 20% or more equity. This can save borrowers hundreds in the future without having to REFI.

Overall this is a huge step for Fannie Mae to bring this out. You are no longer limited to FHA as a low downpayment borrower giving you much more advantages and opportunities to get into the market.

Very excited about this!!