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Fannie Mae Introduces 5% Down Payment Option for Multifamily Homes

In a signifcant move, effective November 18th of this year, Fannie Mae has lowered the down payment requirement for owner-occupied 2-4 family property loans to 5%!  This is a reduction from the previous limits of 15-25!  

The most basic requirment is that the loan must be used for an owner-occupied purchase.  This means that the borrower will have act as a resident landlord. As a bonus - future rental income can be used to partially qualify for your mortgage.

A cap on the loan program has been set at $1,396,800 which far exceeds any reasonable need in our area.

Owner will need to move into their new purchase within 60 days of closing. The potential downside, of course, is that you, the investor, will have to live alongside your tenants in a multifamily unit, which won’t appeal to everyone.  Still, the additional responsibilities and potential sacrifices of privacy will be worth it for many who have dreamed of real estate investing but have lacked the cash needed to enter the real estate investment market.

Local 2-4 Family Listing that May Meet Requirements for this Program February 21, 2024
21
Listed
105
Avg. DOM
$56.55
Avg. $ / Sq.Ft.
$148,000
Med. List Price
21 Properties
Page 1 of 2
6
Beds
3
Baths
2,452
Sq.Ft.
1850
Year Built
2
Days on Site
S1522079
MLS
$89,900
Neighborhood: Township/Scribas Patent
4
Beds
2
Baths
2,513
Sq.Ft.
1940
Year Built
3
Days on Site
S1521937
MLS
Under Contract
410 West St Carthage,  NY 13619
5
Beds
3
Baths
2,170
Sq.Ft.
1900
Year Built
22
Days on Site
S1518755
MLS
3
Beds
2F21/2
Baths
2,327
Sq.Ft.
1890
Year Built
25
Days on Site
S1518727
MLS
Pending
327 Post St Boonville,  NY 13309
8
Beds
3
Baths
4,352
Sq.Ft.
1900
Year Built
27
Days on Site
S1518495
MLS
Under Contract
9643 State Route 126 Castorland,  NY 13620
$126,000
Neighborhood: Macombs Purchase
5
Beds
2
Baths
2,278
Sq.Ft.
1900
Year Built
42
Days on Site
S1516751
MLS
6
Beds
2
Baths
3,462
Sq.Ft.
1865
Year Built
47
Days on Site
S1515899
MLS
6
Beds
3
Baths
3,344
Sq.Ft.
1900
Year Built
49
Days on Site
S1512233
MLS
Pending
416 - 418 Post St Boonville,  NY 13309
5
Beds
2
Baths
2,240
Sq.Ft.
1885
Year Built
52
Days on Site
S1514976
MLS
Pending
516 Alexandria St Carthage,  NY 13619
4
Beds
2
Baths
1,320
Sq.Ft.
1896
Year Built
63
Days on Site
S1466446
MLS
Under Contract
8212 - 8214 State Route 294 Boonville,  NY 13309
$149,900
Neighborhood: Adgates Western Patent
7
Beds
3
Baths
2,088
Sq.Ft.
1970
Year Built
76
Days on Site
S1513133
MLS
6
Beds
2
Baths
3,360
Sq.Ft.
1900
Year Built
83
Days on Site
S1512267
MLS