We’re thrilled to announce a groundbreaking opportunity for aspiring real estate investors and first-time homebuyers. Preferred Mortgage Corporation, in line with Fannie Mae’s innovative policy shift, now offers a remarkable 5% down payment program for owner-occupied 2-, 3-, and 4-unit properties. This initiative, set to launch on November 18, 2023, officially, is already available through us, marking a significant stride toward making homeownership more accessible and affordable.
In the past, acquiring a multi-family home required a hefty down payment of 15%-25% of the property’s sales price. However, this new program drastically lowers the upfront financial burden, enabling more individuals to enter real estate investment and homeownership. This policy change encompasses standard purchases, no cash-out refinances, HomeReady, and HomeStyle Renovation loans for owner-occupied properties.
Loan Amount Cap Increase
A highlight of this program is the increased loan amount cap, now at $1,396,800, facilitating more efficient acquisition of more significant and pricier properties. Moreover, eliminating the FHA self-sufficiency test for 3-4 unit properties smoothes the path for buyers seeking pre-approvals for multi-family housing. As per FHA Rule 75, the FHA self-sufficiency test requires that 75% of the rental income exceed the monthly mortgage for the property to be deemed self-sufficient. This change will make the pre-approval process less stringent and more buyer-friendly.
A Message to Our Esteemed Real Estate Agents
Real estate agents are pivotal in bridging homebuyers with their dream homes. This new 5% down payment program opens up a vast landscape of opportunities not only for buyers but for agents as well. By partnering with us, you can offer your clients an incredibly reduced down payment option, making multi-family homes a realistic venture for many.
Moreover, the eased pre-approval process and higher loan caps translate to quicker closings and potentially higher property values, a win-win situation for all parties involved. We invite you to explore this program with us and extend its benefits to your clientele, fostering a prosperous community of happy homeowners and successful real estate professionals.
Our team at Preferred Mortgage Corporation
We’re committed to expanding credit accessibility and empowering homebuyers and real estate agents to thrive in this new real estate investment era. Our dedicated loan team is here to help you understand the process and achieve your goal of becoming a multi-family residence owner or aiding your clients in this endeavor. This program is a stepping stone to cultivating a robust real estate market and a promising investment landscape. Don’t miss out on this opportunity—reach out to us today to learn more and embark on a rewarding multi-family homeownership journey!
Discover Your Mortgage Options
Your path to real estate investment and aiding your clients just got much brighter with this new 5% down payment program. Contact us to explore your mortgage options, or complete the form below to get started.
