Exciting developments are underway in the mortgage industry, and we're here to bring you the most significant breakthrough in the mortgage world in the past decade.
In order to expand credit availability and access to affordable rental housing, Fannie Mae is relaxing the down payment requirements for owner-occupants on purchase and basic refinance loans for multifamily homes.
Here's what you need to know:
- Past requirements of 15% and 25% are being changed, and you can now purchase a two-, three- or even four-family home as an owner-occupant with as little 5% down.
- This change takes effect for loans closing after November 18, 2023.
- Regular Conventional Loans
- HomeReady Loans for low-income buyers
- HomeStyle Renovation Loans that combines purchase and rehab costs
- Not available for high balance loans
- First-time buyers and those seeking affordability
- Those looking to become an owner-occupant landlord, building equity and lowering mortgage payments
Owning a home with rental income to help subsidize your monthly costs is a great way to get started as a property owner or to secure residual income for the future. And now it's more affordable.
Who is Fannie Mae?
Fannie Mae is a government-sponsored enterprise that purchases mortgage loans (along with Freddie Mac). This move addresses their goal of expanding credit availability and access to affordable rental housing.
This change opens doors to homeownership for so many people! Contact the EHL Team for more information or to see if you qualify.