Can someone please shed light into the new law that past in November of 2023 around investment opportunities in multifamily units (1-4 units, not commercial) that say you'd be able to put down 5% instead of the past 15-25%?
I am looking to invest into more multifamily units in the Atlanta area.
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
2y
@Dominick Preyer, I'm not a lender, and I suggest you speak with one to gain further insight. However, you're referring to Fannie Mae's 5% down loan program for OWNER OCCUPIED 2-4 unit properties. This is not a non-owner-occupied investment loan product. If you're looking to house hack, this could be a viable option; otherwise, most lenders still require 20%+ down for small multifamily deals.
@Michael Dumler, Thanks for the response. I was under the understanding that this would be for an additional investment that would be non-owner occupied. I'll look into it more as planned.
Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
2y
As mentioned this is for OO properties, not investment/NOO properties.
This is the second post that someone has used the term "rules/law/requirement". Just to be clear conventional loan guidelines are just the standards set by FNMA to buy loans that have been originated, they don't obligate anyone to actually extend those loan terms to borrowers. It also doesn't mean that just because FNMA could buy a loan under those terms that they are actively purchasing those loans...which means loan originators may have no appetite to originate those loans.