Know of a 5% Down Conventional Loan Product?

Question

Hello,

TL;DR Does anyone know of a lender who serves Texas that offers a 5% conventional loan product to financially strong applicants?

I bought my duplex using a 5% down conventional loan called Home Possible in January of 2019 at a 4.2% interest rate. Now, interest rates are much lower but the guidelines for home possible have shifted and I earn too much.

I'm seeking a lender with a 5% down loan product to avoid having to put more money in the property but still capitalize on the lower interest rates. My debt to income ratio is low and I have liquidable investments. The duplex is also in Texas and one side is my personal residence.

Thanks!

David M. · Answer

@Eric Veronica

Oh...  Thanks for the info!

Balane Frece · Answer

Thanks everyone!

Eric Veronica · Answer

@David M. The duplex changes everything.  Below is a snip from the Fannie Mae eligiblity matrix.

David M. · Answer

@Balane Frece

I’m not used to multi families, but that doesn’t seem hard (unless your duplex changes things). Message me I’ll see what the lenders I work with can do

Eric Veronica · Answer

Probably unlikely for a conventional loan.  How long ago did you check the county income limits?  The maximum income limits just increased around 4%-5%.  Maybe if you were just over the income limit for homepossible, this could get you back under.

Good luck!

Julee Felsman · Answer

Hi @Balane Frece!

The Home Possible program still exists and still allows 5% down on an owner-occupied duplex.

To use the program, your qualifying income for the loan must be below 80% of median income for your area. You can look up the 'magic' income number here:https://sf.freddiemac.com/working-with-us/affordable-lending/home-possible-eligibility-mapCheers!

Julee

Know of a 5% Down Conventional Loan Product?

Most Popular Reply