Mckinze Casey December 15, 2023
In late November, Fannie Mae made a groundbreaking policy shift to revolutionize your ability to become a strategic landlord. You can now put down as low as 5% (and even 3.5% in some cases) on a 2-4 unit owner-occupied property (ex. you live in one unit and rent out the additional units). This offers great opportunity for individuals to live in one unit while the tenants of the others, pay for some, or in excess of, your personal residence mortgage responsibility.
The prior Fannie Mae down payment requirements for multi-unit were 15-25%, the change this month lowers the down payment requirement to 3-5%. For all the house hackers out there, you can get into a multi unit property for a much lower cash position and use your tenants to pay your mortgage.
Today, here is how our clients are taking advantage of this opportunity:
1) THE MATH - Let’s say you wanted to purchase a $500k triplex. Before this initiative, your down payment would have been $125k. Now, that same triplex would only require a downpayment of $25k.
2) REPAIRS/UPGRADES- The $100k you would have previously spent on a down payment can be applied to any needed repairs or refreshes to your units.
3) CASH FLOW - Live in one unit while you collect rent from the other 2 units for positive cash flow.
Ready to turn your homeownership dreams into reality? Fantastic! Drop us a line below—because making magic happen is more fun when we do it together. Let's chat about your home aspirations and turn them into a blockbuster story. Ready, set, type away!