Lower Down Payment
Starting on Nov 18th 2023, Fannie Mae is allowing investors to put down only 5% for an investment property. Up until this point, investors were required to put down 15% on an investment property! Here are some of the rules:
- This MUST be your primary residence
- Qualifies only for 2-4 unit properties
- Owner must live in the property for 12 months
- Must be qualified for Fannie Mae Products
If you want to learn more about Fannie Mae products, check out their website.
Self-Employed Friendly
One struggle that hopeful investors usually face is that many lenders require 24 months of income history. If an investor is newly self-employed this can be a difficult requirement to meet.
Fannie Mae is making it easier by accepting income history as low as 12 months. And here’s the best part – this policy change is already in effect and is set to become the new norm by 1/1/24.
Investor’s Dream
Imagine this: You purchase a 4 unit investment property and you live in one of the units for 12 months.
The renters help you pay part of (or the entirety of) your mortgage, and you save up for another property.
After 12 months, you purchase another 2 unit (for 5% down) and your original property becomes cash flowing. While you’re moving forward, your tenants are helping you pay down your mortgage. And the cycle continues.
This new policy is a golden opportunity for investors, first-time homebuyers, or anyone looking to make a smart real estate move. Whether you were hesitant about investing, struggling with high prices, or worried about down payments, this is the solution you’ve been waiting for.
Stay in the Loop
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