Fannie Mae Introduces 5% Down Payment Option for Multifamily Homes

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Fannie Mae Introduces 5% Down Payment Option for Multifamily Homes

Adam Eckhoff
Member since 2020 路 43 posts 路 22 votes

Hello Everyone,

Fannie Mae introduces 5.0% down for MF Properties as of November 18, 2023, aside from the normal 15-25% down. This may seem like a silly question, but is there a catch? 

For example, a $400,000 at 25.0% down is $100,000, which maybe a lot of people don't have for purchasing their (or my) first rental. Conversely, with the new 5.0% down, $20,000 is reasonable, and we have some left in the bank for emergency funds. 

With this news coming out, should we all be pulling the trigger on multi-family properties.

https://themortgagereports.com/107690/fannie-mae-introduces-...

Thanks,

Adam.

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Russell BrazilBusiness Member
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Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes
2y

Best loan product available now, hands down. 

[email protected]301-893-4635Podcast Guest on Show #192
District Invest Group546 Reviews
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  • Brittany MinocchiBusiness Member
    Lender 路 Massillon, OH 路 Member since 2022 路 1k+ posts 路 486 votes
    2y

    The catch is that this is for owner occupied 2-4 units 馃槵 if you're not living in it, you're still putting 25% down. 

    [email protected]330-354-6590
    Brittany Minocchi - Barrett Financial Group, LLC522 Reviews
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  • Adam Eckhoff
    OP
    Member since 2020 路 43 posts 路 22 votes
    2y
    Quote from @Brittany Minocchi:

    The catch is that this is for owner occupied 2-4 units 馃槵 if you're not living in it, you're still putting 25% down. 

    Ahh I knew there was something. Thank you!
    0Reply
  • Randa Dehaan
    Lender 路 San Diego, CA 路 Member since 2023 路 33 posts 路 16 votes
    2y

    Agreed, the catch would be that this is for primary residence only. HOWEVER, the really cool thing is that there is no first time buyer requirement. Meaning, if you're into house hacking - you could utilize the 5% down payment option, live in the property for a year and then go and do it again with another multi unit! Pretty cool

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes
    2y

    Best loan product available now, hands down. 

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group546 Reviews
    WebsiteView Page
    1Reply
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