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5% Down Payment Loan for Multifamily Homes

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Fannie Mae is set to revolutionize the multi-family housing market by reducing the down payment requirement for owner-occupied 2-, 3-, and 4-unit homes to 5%, starting November 18, 2023. This significant departure from the previous 15-25% norm makes multi-family home purchases more affordable and accessible.

The policy applies to various scenarios, benefiting first-time homebuyers and those combatting high mortgage rates. The maximum loan amount for 2-4 unit homes is now $1,396,800, and hurdles, such as the FHA self-sufficiency test and Rule 75, have been eliminated.

Prospective buyers can apply now, with changes effective after November 18, 2023. For owner-occupant landlords, the reduced down payment not only enhances accessibility but also enables them to collect rent from additional units while building equity. Fannie Mae’s decision aligns with their commitment to improving access to credit and affordable rental housing, offering a promising opportunity for multifamily home investment with a 5% down payment.



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