Unlock Financial Freedom: New Multifamily Property Financing in 2024

I'm excited to share a game-changing update in multifamily property financing. Many aspiring investors find it challenging to break into real estate due to the significant down payments required. This newsletter addresses this hurdle by explaining how you can now finance two- to four-unit properties with only 5% down, opening doors to wealth-building opportunities. By the end of this, you'll understand the specifics of this new conventional loan program and how to take advantage of it.

What You Will Learn

• Key features of the new conventional loan program for multifamily properties.

• The reduced down payment requirements and how they benefit investors.

• Conventional loan rules and standards that apply to this program.

• Loan limits based on property type and location.

Reduced Down Payment: A Game Changer

The most significant feature of this new conventional loan program is the 5% down payment requirement for two- to four-unit properties. Previously, you needed 15% to 25% down, making it difficult for many to invest. This change dramatically lowers the barrier to entry, allowing more people to start building wealth through real estate.

Conventional Loan Rules and Standards

This loan program follows conventional loan rules, ensuring certain standards are met. I'll provide more details on these rules, but it's important to know they exist to protect both you and the lender. Understanding these standards is crucial for a smooth financing process.

Primary Residence Requirement

To qualify for the 5% down payment, you must live in one of the units as your primary residence. This requirement ensures that the property is not just an investment but also your home. It’s a fantastic way to reduce your housing costs while building equity.

Loan Limits Based on Property Type and Location

Loan limits vary based on the type of property and its location. Generally, the limit is around $1.3 to $1.4 million for four-unit properties. For a two-unit property, the loan limit is $929,900; for a three-unit, it's $1.1 million. These limits depend on the county and state, so I recommend checking the specific limits in your area.

Conclusion

This new conventional loan program offers a significant opportunity for you to invest in multifamily properties with a reduced down payment. Remember, the key takeaways are the 5% down payment, the requirement to live in one of the units, and the varying loan limits based on property type and location. By understanding these elements, you can take advantage of this program to build wealth and achieve financial freedom.