5% Down on Multi-Family Units is BACK!

#mortgage #realestate

Big announcement this morning indicating that 5% down payment on Conventional 2-4 unit properties is back effective immediately! If you remember, we had this before but it changed to 15% down minimum.

This 5% down Conventional option is available to borrowers who make less than the 80% AMI (Area-Median Income), which for the Twin Cities is $82,240. Of these borrowers, those purchasing duplexes can take part in Bell's BorrowSmart program which will provide a $1000 grant towards closing.

Normal stipulations apply:
-Conventional product
-Must get an Approve/Eligible on automated findings
-BorrowSmart grant only applies to duplex purchases
-3-4 unit properties require 3% of the borrower's own funds verified for the down payment
-Standard rental income requirements and restrictions apply
-Landlord education certification and completion required
-TLTV ratio of 105% is permitted when secondary financing meets Freddie Mac's Affordable Second Requirements

📒 Show Notes and Resources 📒

Justus Foss
Mortgage Loan Officer - Finance With Foss
NMLS #1588344

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