Does the fannie mae 5% down for owner-occupied properties allow for new construction?

Question

I know that fannie mae recently changed its guidelines about multi-family property loans, and now allows a 5% down payment for 2-4 unit homes as long as the owner will occupy one unit. Does this apply to new construction? Could I build a fourplex for 5% down?

Andrew Postell · Answer

@Ellie Narie to build a home would require 2 different loans or a "one-time-close" loan. Do you have a lender that you are working with yet? Not every lender will do new construction loans and even fewer will do the "one-time-close" option. So depending on what lender you have access to really depends on what they allow with this.

Ellie Narie · Answer

Has anyone been able to find out more info on this? I know fannie mae offers a 5% down one time close loan for a single family home construction, but now with the new rules, does it allow 2-4 units for this 5% down payment?

Andrew Postell · Answer

@Ellie Narie oh, to get financing on an existing, primary, 2-4 family home, you only need 5% down with Fannie/Freddie now. I wrote a post on this topic when it first came out that you can read HERE. If you are speaking about building a property yourself, then that's different. But maybe that other article will help.

Ellie Narie · Answer

I'm just wondering if anything has changed with construction because of the new fannie mae 5% down program for multi-family owner occupied properties. It used to be that fannie mae allowed 5% down construction one-time close loan on single family homes, 15% down on duplexes and 25% down on 3-4 unit properties. But now I'm wondering if all of those are reduced to 5% down.

Does the fannie mae 5% down for owner-occupied properties allow for new construction?

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