![](https://applywitheirik.com/wp-content/uploads/2023/10/eirikmagnus_a_family_that_is_standing_in_front_of_their_newly_p_c1e2dc10-9b82-4f0d-80bc-096c58179dee.png)
Fannie Mae is Shifting Its Position in a Major Way
In a groundbreaking move, Fannie Mae has unveiled a policy change effective post-November 18, 2023, that significantly reduces down payment requirements for owner-occupied 2-4 unit homes. Previously, buyers had to shell out a hefty 15-25% down payment for such properties. Now, they can secure these homes with just a 5% down payment, making multifamily homeownership more attainable.
This policy shift is a boon for potential owner-landlords. The reduced down payment means multifamily homes, including duplexes, triplexes, and four-plexes, are now within easier reach. It’s an invitation for individuals to explore the dual benefits of property investment and homeownership.
Fannie Mae’s revised guidelines encompass standard purchases, no-cash-out refinances, HomeReady, and HomeStyle Renovation loans for owner-occupied deals. This expansion in financing options is especially beneficial for first-time buyers and those aiming to mitigate high mortgage costs. With the cap for loans on 2-4 unit properties set at $1,396,800, buyers have the flexibility to opt for larger, pricier homes. The removal of the FHA self-sufficiency test for 3-4 unit homes further simplifies the pre-approval process.
The policy is a game-changer for owner-occupant landlords. By leveraging rental income, you can significantly offset mortgage payments. The reduced down payment not only makes property acquisition easier but also offers a chance to earn as landlords. Buyers can collect rent from other units, gaining hands-on landlord experience while building equity in their residence.
In summary, Fannie Mae’s decision to slash down payment prerequisites for multifamily homes is a progressive stride towards enhancing credit accessibility and affordable rental housing. It’s a move that brings the dream of owning a multifamily property, coupled with rental income, closer to reality for many.
![](https://applywitheirik.com/wp-content/uploads/2023/10/eirikmagnus_a_hipster_in_a_coffee_shop_working_on_his_gig_econo_14c43b5c-10e5-4fa0-bb65-f3c83c8192fd-75x75.png)
![Bewildered Day Traders wondering who will purchase their MBS](https://applywitheirik.com/wp-content/uploads/2023/09/eirikmagnus_money_traders_looking_bewildered_as_if_they_are_giv_b72b1df7-a6f2-4935-aaac-7e88ce974f03-75x75.png)