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Writer's pictureNick Barta
Oct 11, 20232 min read

Your Home, Your Wealth: A Simpler Path to Buying and Earning

Updated: Oct 12, 2023

Exciting news for future homeowners and savvy investors: Fannie Mae has introduced a policy that makes buying a home—and earning from it—more accessible than ever, starting November 18, 2023.


Multi-family homes in Western USA, featuring a variety of townhomes, ranch-level, and multi-level residences available for purchase and investment, illustrating the new Fannie Mae 5% down payment policy

5% Down, 100% Opportunity

Here’s the deal: Now, with just a 5% upfront payment, you can become the owner of a multi-unit property (a building with up to four separate living spaces), provided you plan to live in one of them. This is a significant reduction from the previously required 15-25% down payment, making it notably easier and more affordable to both secure a home and step into the role of a property investor.


Specifically, the shift to a mere 5% down for 2 to 4 unit properties is monumental. In the past, a 20% down payment was required for 3 to 4 units and 15% for 2 units, placing this opportunity out of reach for many. This change is not just an adjustment; it's a game-changer in property investment.


Flexible Loan Options

Your financial journey should be as unique as you are. With a range of loan options, you can select the one that fits you best, especially with the new, lower 5% down payment offering both choice and financial flexibility:

  • Conventional Loan: The straightforward, traditional loan type.

  • HomeReady Loan: An option designed for those with limited financial means.

  • HomeStyle Renovation Loan: A dual-purpose loan that covers both the purchase and any renovation costs.


Transform Your Living Space into a Source of Income

By owning a multi-unit property, you’re not just securing a home for yourself. The additional units can be rented out, providing a regular influx of income that can help cover your mortgage and potentially other expenses, turning your living space into a strategic financial asset.


Key Points to Remember

It’s crucial to note that this policy will be applicable for loans that close after November 18, 2023, and it does not apply to high-balance loans, which are designed for more high-end properties.


Guidance Every Step of the Way

Curious to learn more? I’m here to help clarify any details and guide you through your exciting journey to homeownership. Let’s explore how your new home can also become a smart investment for your future.




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*No down payment loans: Closing costs and fees may still apply. First lien interest rates may be higher when using a DPA second. Opinions expressed are solely my own and do not express the views of my employer. Pre-approvals are given to clients who have met qualifying approval criteria, for specific loan requirements, and have been pre-approved by a PRMI underwriter. VA home loan purchases, have options for 0% down payment, No private mortgage Insurance requirements, competitive interest rates, with specific qualification requirements. VA Interest rate reduction loans (IRRRL) are only for Veterans who currently have a VA loan, current loan rate restrictions apply, and limits to recoupment of costs and fees apply. VA Cash-out Refinances are available for Veterans with or without current VA loans. Policies and guidelines may vary and are subject to the individual borrower(s) qualification. Program and Lender overlays apply.

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