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Tyler Bain
  • Real Estate Investor
  • Chicago, IL
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25% Down Payment Required for Multi-Families? New Fannie/Freddie Rule?

Tyler Bain
  • Real Estate Investor
  • Chicago, IL
Posted Apr 30 2015, 15:48

I'm currently in on the hunt to purchase my first Multi-Family property and am going through all my pre-approvals with lenders so I can put an offer in on a Tri-Plex. I plan to "House Hack" and live in one of the units and rent out the others. 

My plan WAS to put 5% down and use a conventional mortgage HOWEVER I'm just now finding out that Fannie & Freddie now require a minimum of 25% down for 3 and 4 unit properties.

Have any of you ran across this same problem recently? When was this "rule" changed?

25% vs 5% is a significant difference that makes me re-evaluate if this is a good decision for me or not. I asked if this was specific to the Omaha, Nebraska area and was informed by several lenders that it was a national Fannie / Freddie stipulation. 

Any advice here would be greatly appreciated.
Thanks,

Tyler Bain

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