Buy units with only 5 percent down payment

Yes, you heard right! You can now purchase 2-4 unit properties with only 5% down payment Conventional financing. In the past to purchase a 2-4 unit property with Fannie Mae conventional financing, you would’ve needed a minimum of 15% down. You of course would need to live in one of the units to meet the owner occupancy requirements but overall, this is great news. Previously to purchase a 2-4 unit property with less than 15% down, buyers would seek an FHA loan which carries a higher mortgage insurance premium and would require a self-sufficiency test on 3-4 units meaning (one must be occupied by borrower), the rents would need to at a minimum cover the mortgage payment, taxes, PMI, and insurance to qualify. The self-sufficiency test as you can only imagine posed a problem when it came to qualifications especially in southern California due to the increasing home values.

This is welcome news in today’s real estate and loan market because this will help open doors to many more borrowers looking to purchase 2-4 unit properties. This is also great news especially in Southern California where we are currently experiencing a housing shortage, not only for buyers but also for tenants. My goal is to provide you with all the necessary tools to make an informed decision while providing you great rates and no junk fees. If you should have any questions about this loan product or any other for that matter, feel free to reach out. My team and I are ready to help with your mortgage needs.