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  • Writer's pictureVadim Shtil

Fannie Mae's Game-Changing Low Down Payment Program

Are you dreaming of becoming a property owner and landlord, but hefty down payments have been holding you back? Well, the game is changing, thanks to Fannie Mae's groundbreaking decision to introduce a 5% down payment option for multifamily homes. This policy shift, which took effect after November 18, 2023, opens doors for aspiring property owners and landlords, making the dream of multifamily homeownership more accessible than ever.

Lowered Down Payment Requirements for Multifamily Homes

Fannie Mae's move signals a departure from the traditional 15-25% down payment requirements for duplexes, triplexes, and fourplexes. This significant policy change is poised to redefine the landscape of multifamily financing, providing a golden opportunity for individuals looking to invest in these properties while enjoying the benefits of homeownership.

Expanded Financing Choices and Easier Approvals

The new down payment option applies to various scenarios, including standard purchases, as well as HomeReady, and HomeStyle Renovation loans for owner-occupied transactions. This means that first-time buyers and those seeking relief from high mortgage payments now have more accessible financing options at their fingertips.

With these new changes, Fannie Mae ensures flexibility for purchasing larger and more expensive multifamily homes. Additionally, the elimination of the FHA self-sufficiency test for 3-4 unit properties streamlines the pre-approval process, reducing hurdles for potential buyers.

Seizing the Opportunity

If you've been eyeing the multifamily market, now is the time to act.

For owner-occupant landlords, this policy shift is a game-changer. The ability to make a smaller down payment not only makes multifamily homes more accessible but also opens the door for gaining valuable landlord experience. Imagine collecting rent from other units while simultaneously building equity in your own property – a win-win scenario for savvy investors.

Pros and Cons of Fannie Mae's Program


  • Reduced Down Payment: Fannie Mae's program significantly lowers the down payment requirement, enhancing accessibility for a broader range of buyers, including first-time homeowners and real estate investors.

  • Live Plus Income: Buyers can offset housing costs by renting additional units, enabling them to be both homeowners and investors simultaneously. Rental income can support mortgage payments through this 'live plus income' model.

  • Qualifying with Rental Income: Fannie Mae allows buyers to use projected rental income to qualify for the loan, providing an advantage for those with limited personal income but strong potential rental revenue.

  • Encouraging Real Estate Investment: By reducing entry barriers and promoting affordable homeownership, Fannie Mae's program encourages individuals to explore real estate investment opportunities, fostering wealth-building and financial stability.


  • Liquidity Requirements: Beyond the reduced down payment, buyers should consider additional financial obligations, including required financial reserves of six months of full mortgage payment.

  • Residency Requirement: Buyers must intend to occupy one unit as their primary residence, so this program is not for non-owner-occupied investment properties.

Fannie Mae's move is highly beneficial for the real estate landscape, providing a unique opportunity for individuals to step into the multifamily market with reduced financial barriers.

If you've been hesitating to pursue your dreams of property ownership, the time to act is now. Seize the opportunity, embrace the new down payment option, and make your mark in the multifamily real estate arena. 

As a mortgage brokerage, Shtil Group is committed to serving the unique needs of every individual. We emphasize the importance of exploring these financing options thoroughly.

Together, let's turn your dream of homeownership into a reality.

New Low Down Payment Program

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