Multi-Family Homes Just Became More Affordable!

Fannie Mae's game-changing program lets you buy a 2-, 3-, or 4-unit home and live in one unit while renting out the others – with just 5% down!

This means:

• Lower upfront costs: Start building your real estate portfolio with significantly less cash.
• Offset your mortgage: Enjoy the benefits of homeownership while generating rental income.
• No self-sufficiency test: Qualify for a 3-4 unit property more easily than before.

Previously, 15-25% down was required, making multifamily ownership inaccessible to many. Now, the door is open!

It could mean big changes for multifamily home buyers.

Fannie Mae is known for offering down payments as little as 3-5%. Before the change, that only applied to 1-unit properties.

A two-unit home (duplex) required 15% down and 3-4 unit homes required 25% down. Both will be reduced to 5%.

That previous down payment levels hindered many would-be owner-landlords. Especially since these properties are much more expensive than a typical single-family home. 

A $500,000 triplex required a $125,000 down payment. But effective November 18, 2023, only 5% down will be required, or $25,000, a difference of $100,000 in this case.

Following are additional examples of reduced down payment needed.

The changes apply to standard purchases, no-cash-out refinances, HomeReady, and HomeStyle Renovation loans for owner-occupied transactions.

Cash needed including reserves:

The down payment isn’t the only upfront cash needed. You will need:

• Down payment (5% of purchase price)
• Closing costs (around 2-4% of purchase price)
• Reserves (6 months of the full payment)

The big caveat to this new program is that Fannie Mae requires you to have six months of the full payment in reserve after paying the down payment and closing costs. You don’t need to pay this money, but you must prove you have it in an accessible account.

For example, a $400,000 duplex would require $20,000 down payment and about $12,000 in closing costs upfront and $21,000 in reserve after closing (assuming a $3,500 full payment). You would need $53,000 total in savings, checking, and other accounts to qualify.

This could be a large barrier for first-time buyers, but Fannie Mae has so far not repealed the six-month reserve rule.

Here's what you need to do:

1. Contact She Moves Realty: We'll help you navigate the process and find the perfect property.
2. Get pre-approved: We'll connect you with our mortgage partners.
3. Find your dream home: We'll help you search and negotiate the best deal.

Why choose She Moves Realty?

• Multifamily experts: We specialize in helping clients achieve their multifamily ownership goals.
• Loan assistance: We'll guide you through the mortgage pre-approval process and connect you with the right lender.
• Seamless closing: We'll ensure a smooth and stress-free closing process.
• Post closing assistance: We'll walk you through getting your rental ready to go and even help you secure your new tenants.

Don't wait! This program is a game-changer for anyone who wants to build their rental portfolio or set their future selfs up with passive income. 

Contact She Moves Realty today to start your journey!