Fannie Mae lowers down payment requirement for owner-occupied multi-family homes
In a significant development for both real estate investors and prospective homeowners, Fannie Mae, a key player in the mortgage industry, has recently announced a groundbreaking change in its down payment requirements for owner-occupied multifamily property loans. This move, effective as of November 18, is poised to make purchasing investment properties more accessible by reducing the required down payment. As a direct Fannie Mae lender, Intercap Lending is able to originate and underwrite these multi-family property loans.
5% down payment option on duplex, triplex, and fourplex properties
Fannie Mae’s decision to lower the down payment requirement is a game-changer for borrowers looking to invest in duplexes, triplexes, and fourplexes. Previously, individuals seeking financing for these types of multifamily properties faced down payment obligations ranging from 15% to 25%. Now, thanks to this policy shift, borrowers will only need to put down 5% of the total value of the multifamily home.
This significant reduction in the down payment threshold is expected to have far-reaching implications for the real estate market. It not only facilitates the entry of new investors into the market but also provides relief for prospective homeowners grappling with the challenges of high-interest rates affecting real estate affordability. Meet with your Intercap loan officer to understand potential rates, terms, and options.