Freddie Mac Home Possible - 5% Down (2-4 units)

[Jesse Byrer]

I want to share this program with the group for those that are not aware of it. Freddie Mac has a program that allows only 5% down on 2-4 units. This is a huge opportunity for savvy home buyers because you can get into a larger building (2-4 units) with less money down. You might be asking yourself, why not FHA.. it only asks for 3.5% down. That's true, but the loan limits are lower for FHA, the MI is higher and is there for life if you only put down 3.5%. Not to mention, FHA has a self-sufficiency test you must pass on a 3-4 unit. This can be very difficult to pass in states with high property taxes... not to mention the current high rate and high-priced housing market we're experiencing. I'm a firm believer that everyone should have an investor mindset and this product really helps those wanting to get in the RE Investing Game! While this is only for owner occupants the borrower can get gift funds from a parent (must have 3% of their own funds). Think RE Investors wanting to help getting their kids get off to a great start:-) FYI, we also offer this for renovation loans as well so I will be doing a similar post under the BRRRR Group. Good luck to all!

[Ryan Thomson]

@Jesse Byrer I have yet to see this work in Colordao Springs. For the 80% of AMI qualifying income include the rent of the other three units? Or does it only include the buyers income? 

If it includes the total income (buyers job + rent of three units) then 80% of AMI will not qualify for any triplex or fourplex in Colorado Springs.