New Conventional Rules

[Damon Aniton]

So I am tying to think my way through a few things involving these new downpayment rules.

Only needing 5% down is pretty self explanatory. First thing I am trying to get clarity on. Can I use the new conventional to purchase near where I have my current primary residence under a VA loan. When when I say near I kind of want to buy the house they built behind me.

Second question I have been trying to get a clear answer on for a while now.  I kind of have the answer but there has never been what seems like an absolute yes or no.  Fannie Mae limits are 929k, 1.123m and 1.396m respectively on 2, 3 and 4 units.  Are these in fact the same limits on a VA loan?

[Benjamin Sulka]

Hey Damon, 

Check the accuracy on this. This website says that for Louisiana VA loans, borrowers with "full VA loan entitlement" can borrow as much as the lender is willing to lend. If you're a veteran without full VA loan entitlement you can only borrow up to $726k. This is straight from the VA mortgage center.

If you're referring to the recently announced 5% down Fannie Mae program that is set to roll out on November 18th, this program was rolled out specifically for owner-occupied 2-4 unit properties. If you wanted to purchase the home behind you using this program, you would have to live in the property. For a property that is going to be strictly a rental you'd have to put 20-25% down. 

If you can live in this property for a year, you would be eligible for the low down payment. Then you can turn it into a full time rental after you move out. 

Hope this helps!