Fannie Mae Introduces 5% Down Payment Option for Multifamily Homes

October 16, 2023

Lowered down payment requirements for multifamily homes

In a significant policy change, Fannie Mae has announced that starting from the weekend after November 18, 2023, it will accept 5% down payments for owner-occupied 2-, 3-, and 4-unit homes. This marks a departure from the previous multifamily financing requirement of 15-25% down payments for duplexes, triplexes, and four-plexes.

This new option presents a great opportunity for individuals looking to invest in multifamily homes while also enjoying the benefits of homeownership. Prospective owner-landlords can now afford these properties more easily, thanks to the reduced down payment requirement by Fannie Mae.Check your home buying options. Start here (Oct 16th, 2023)

Expanded financing choices and easier approvals for multifamily homes

The policy change applies to standard purchases, no-cash-out refinances, HomeReady, and HomeStyle Renovation loans for owner-occupied transactions. This means that first-time buyers and individuals seeking to offset high mortgage payments can take advantage of Fannie Mae’s more accessible financing options.

The maximum loan amount allowed for these 2-4 unit properties is set at $1,396,800, ensuring that larger and more expensive properties can be purchased with flexibility. Additionally, the elimination of the FHA self-sufficiency test for 3-4 unit properties means that buyers will face fewer hurdles when seeking pre-approval for these types of multifamily homes. Read more.

– Marcus Bruno
Real Estate Broker
Bruno Fine Properties
(281) 969-3817

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About the Broker/Owner

Marcus Bruno

I am a licensed real estate broker with over 20 years of experience in the industry. I started my career in 2000 as a real estate agent, and in 2010 I became a broker. I have a passion for helping people find their dream homes and negotiate the best deals. I specialize in residential real estate, and I have extensive knowledge of the local market and trends. In 2015, I moved to Houston with my family and in 2018 opened Bruno Fine Properties Inc, a real estate brokerage that serves the Spring area and surrounding communities. I am a proud father of five beautiful girls, and I have been happily married to my wife Malika Bruno since 2003. When I am not working, I enjoy spending time with my family, playing golf, and reading. I am always eager to meet new clients and look forward to sharing my knowledge.

Remarkable service for remarkable you!

testimonials

I purchased my 2nd home in 2011 with the help from Marcus. I had just went through a divorce and was ready to move on. Marcus held a home buying seminar and that's where I met him. We talked about what I wanted and what I needed to purchase a home. He was patient, knowledgeable of how the realtor marketing worked. We started the process and within 4 months I went to settlement. I set a goal of how much I wanted to spend and the size of house I wanted and he delivered. He kept in touch with me everyday with house listing, emails and phone conversation and he was "HONEST". The one thing you need to feel when spending your money. I have recommended him to people and I still recommend him today. He enjoys his work and making people happy. Thank you Marcus, Ms. Richardson

Paulette Richardson

When we decided to sell our home and look for a new one, we firmly resolved not to make any compromises and to settle only for the house we really wanted, with all the attributes we chose as ideal. We realized this would take a good while, and so we warned our agent that he needed to be very patient; we did not want to feel rushed. It took two whole years to find the house of our dreams and Mr. Bruno stayed the course all the way. He is like Job: perseverant to the end. Note that we only wrote one contract on a house, and it was for the one we bought, thanks to the help and guidance of our agent.

Cindy & Bruce Wein

Let me just say, my fiance and I absolutely adore Marcus and would recommend him to anyone trying to buy or sell a home. We were so impressed with him, we were already recommending him to our friends and family before we even closed on our own home. We originally had another real estate agent and had to relieve him after being passed up for 5 different homes because of the lack of timeliness and professionalism that was displayed. We were very frustrated to say the least, so we did an agent search and were paired up with Marcus by chance and we were so blessed we found him. Marcus is extremely professional and patient with his customers and is willing to go the extra mile. Marcus's knowledge of the process way surpassed anyone we had ever dealt with before. He was always available right when we needed him and checked in frequently with us to see us through the whole process. He was able to negotiate with the home owner and bring down the price significantly. I do not have anything negative to say about Marcus and will highly recommend him to everyone I know. We have definitely had a wonderful experience and will deal with him in any of our future endeavors.

Richard & Winona Chavira

Marcus helped my wife and I purchase our home in 2013 and the experience was amazing! We really benefited from his vast knowledge and expertise in real estate. Marcus has a way of taking the stress out of the home buying process through patience and willingness to answer all questions in detail, no matter how many times you ask the same question. From the initial consultation all the way to the closing table, there was a very relaxed, pleasant and worry- free vibe that he created. Marcus has proven to be not just a professional but a friend who cares and we appreciate him to the fullest!

Jon Mccoy

What struck me most was that when I asked a question, I got an honest response, and when the facilitators didn't know the answer, they knew where to look up the information and get back to us about it. One of the great aspects was that there was an attorney present to give answers "from a legal point of view". Lastly, the handouts were clear and concise--really helpful and not something to put away in a binder forever and always. I would recommend this seminar to anyone who is planning to buy or sell a home and is new to the world of real-estate.