MortgageDepot is excited to share some exciting news! Starting the weekend after November 18, 2023, MortgageDepot welcomes down payments as low as 5% for owner-occupied 2-, 3-, and 4-unit homes. This adjustment represents a departure from the previous norm, which required down payments ranging from 15-25% for duplexes, triplexes, and four-plexes. With this new option, an exceptional opportunity emerges for those considering investments in multifamily homes while relishing the perks of homeownership.
Enhanced Financing Opportunities and Streamlined Approvals for Multifamily Dwellings
This reduced down payment applies to standard purchases, no-cash-out refinances, HomeReady, and HomeStyle Renovation loans for owner-occupied transactions. Here are some highlights:
- For first-time buyers only.
- Individuals seeking relief from high mortgage payments.
- Maximum Loan Amount for 2-4 Unit Properties: $1,396,800.
- Enhanced Flexibility for Larger and More Expensive Properties.
- FHA Self-Sufficiency Test for 3-4 Unit Properties not required.
- Reduced Hurdles in Pre-Approval Process.
Seize the Opportunity Offered by Fannie Mae’s Policy Change
For owner-occupant landlords, this shift presents a significant opportunity to lower mortgage payments by leveraging rental income. The ability to make a smaller down payment not only makes multifamily homes more accessible but also enables home buyers to gain valuable landlord experience. They can collect rent from other units while simultaneously building equity in their own property.
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