Fannie Mae’s Low Down Payment for Duplex, Triplex and Quad Rentals
December 12, 2023
Fannie Mae's Low Down Payment for Duplex, Triplex and Quad Rentals

Hey there, friends! Avisha here, and I recently had an eye-opening conversation with Becky about an absolute game-changer in the real estate world. If you’ve ever dreamt of owning a duplex, triplex, or even a quad but were held back by down payment worries, you’re in for a treat.

The Fannie Mae Revelation

Becky and her husband were just like many of us, yearning for that perfect multifamily property but concerned about the down payment. That’s when I dropped the bombshell – the New Fannie Mae guidelines. They’ve slashed the down payment requirement for owner-occupied multifamily property loans from the traditional 15-25% down to an incredibly low 5%. Yes, you read that right!

Perfect Timing

Becky’s reaction was priceless, and she wasn’t alone. Many folks still believed that hefty down payments, up to 30%, were a necessary evil for investment properties. Not anymore. This change came into effect in November 2018, and the timing couldn’t be better, especially with the current high-interest rates affecting real estate affordability.

Understanding the Requirements

Curious about the nitty-gritty? The most crucial requirement is owner-occupancy. This means you, as the borrower, will live at the property and act as a resident landlord. The beauty of this setup is that future rental income can be used to qualify for your mortgage loan.

But hold on, it’s not just about future rental payments. You need to meet current income requirements and be paying rent where you currently live. The process just got simpler, too – Fannie Mae removed the FHA self-sufficiency test for 3-4 unit properties. Previously, 75% of rental income had to exceed the mortgage, but not anymore.

Cap and Expansion

Here’s more good news – the cap on 2-4 unit loans under the program is set at $1,396,800. This significantly expands the pool of properties available to investors, opening up exciting opportunities in the market.

Ready for a Revolution?

Excited yet? Let’s make your real estate dreams a reality without breaking the bank!

Contact me today.

Avisha Kassir Luxury Home & Investment Properties


605 Lincoln Rd, 7th Floor
Miami Beach, FL 33139


6820 Elm St.
McLean, VA 22101


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