I have some great news to report, as Fannie Mae is dramatically reducing the down payment requirements for purchasers utilizing multi-unit properties as their primary residence.
Historically, buyers would need to bring in a minimum of a 25% down payment for a 3-4 unit property or 15% for a duplex. That all changes starting November 18, 2023.
Now, any multi-unit property (2-4 units) can be purchased with just 5% down!
Here are the new calculations:
Here’s a little bit more:
Specifics
This is for a primary residential purchase only, and mortgage insurance will apply if utilizing the 5% down option.
Secondly, 75% of the expected rents of the non-owner occupied unit(s) can be used as qualifying income for the loan application.
I’m glad to announce that we now have investor specific financing options in the residential income producing space…both long-term and short-term financing available, ranging from 1 to 20 units.
These products are tailor-made for real estate investors with income producing properties.
Finance of America Commercial, a division of Finance of America Mortgage LLC, provides individual and business exposure limits with individual FIX & FLIP rehab property loans, along with BRIDGE loans, NEW CONSTRUCTION loans, and SINGLE & PORTFOLIO RENTAL term loans to residential real estate investors across the country.
These offerings have helped clients overcome traditional financing hurdles and build long-term wealth through real estate investment.
These specific lending products and tools are designed with the real estate investor at the forefront – to help provide the personalized service investors need.
Income Producing Property/Portfolio Loans – 2 to 20 units
30-year term available
Full amortization and interest only options
Loans from $200K to $5M
Funding up to 80% on purchases and rate/term refinances
Fix and Flip Loans
Funding up to 95% of acquisition and rehab costs
Max loan-to-value 75% based on ARV
Interest accrual on drawn balance
12- and 18-month term options
Bridge Loans
Individual property loans up to $3M
Funding up to 80% LTC on multi-family
Payoff other loans or lenders on completed flips or new builds
Ideal for light rehab flips when self-funding cosmetic rehabs
New Construction Loans
12–18-month term for build ready lots in urban locations
Funding up to 100% of construction budget and 80% LTC/65% LTV for multi-unit
Funding up to 90%/75% LTV for experienced builders (conditions apply)
Business purpose loan with no income requirements
Would you like to find out more? Contact me to discuss your current situation and how you might be able to take advantage of these fantastic financing options. It would be my pleasure to help you!
Thomas Eugene Bonetto
Mortgage Loan Originator
NMLS: 1431961
About The Coach
Tom Bonetto has been helping his customers and players achieve their best for nearly 30 years. His goal is to provide both a superior customer experience and tremendous value for both his business associates and his players alike.
