Are you dreaming of Owning Investment Property? DOWNPAYMENT Has You Stuck!

Dated: November 22 2023

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Are you dreaming of Owning Investment Property? DOWNPAYMENT Has You Stuck! Fannie Mae's NEW 5% Down Payment Loan Program Makes It Happen!

With a combined 30 years of experience as a real estate agent and investor, I understand the traditional hefty 30% down payment has long been a massive hurdle for any investor. As of November 18th, this CHANGES! That's when Fannie Mae's game-changing 5% down payment loan program for multi-family homes comes online! The path to building your real estate portfolio has just become more obtainable! If you're ready to make a smaller upfront investment and step into real estate investing, I'm here to guide you through the process.

 Multi-family Properties: A Smart Investment Choice that offers several advantages for investors, including:

  • Maximized rental income: With multiple units to rent, multi-family properties have the potential to generate more rental income than single-family dwellings.

  • Value growth: Boosted by consistent demand, multi-family properties tend to appreciate over time, offering investors the potential to build significant equity.

  • Tax deductions: Expenses incurred from your investment, such as mortgage interest, property taxes, and maintenance, can often be deducted, potentially lowering your tax liabilities.

  • Winner Winner: Tenants, PAY OFF YOUR LOAN and pay all the expenses!

House Hacking: A Strategic Entry Point for New Investors

For those new to real estate investing, house hacking can be an intelligent way to get started. By purchasing a multi-family property and living in one unit while renting out the others, you can substantially reduce your housing costs and accelerate building equity. Eventually, you can transition the property into a full rental and unlock a new income stream. 

Fannie Mae's 5% Down Payment Program

Fannie Mae's 5% down payment program makes multifamily investing more accessible for a broader range of investors. With a reduced down payment requirement, investors can enter the market more efficiently and start reaping the benefits of multiunit property ownership sooner.

Eligibility Requirements (Made Easier):

  • Credit score of at least 620

  • Debt-to-income ratio (DTI) no higher than 45%

  • Loan-to-value ratio (LTV) at 97% or below

  • Stable employment and verifiable income

How Rental Income Makes a Difference

When securing a Fannie Mae 5% Down Multifamily loan, lenders use the rental income in two critical ways. First, they use the gross potential rental income (GPRI) to help you qualify for the necessary loan amount. Second, this income helps offset your mortgage payments, reducing your debt-to-income ratio and making qualifying for the loan more manageable.

For instance, if you're eyeing a 3-unit property with a GPRI of $3,000 per month and a DTI of 40%, you might get approved for a loan up to $450,000. In addition, if your mortgage is $2,000 monthly and you're earning $3,000 in rent, you're paying only $1,000 monthly.

The Perks of Utilizing Rental Income

Using rental income to qualify for the loan reduces the down payment and could get you a higher loan amount, making a more significant or valuable property within your reach. This strategy also lowers your monthly mortgage payments, making the ownership of a multi-family property more affordable.

Ready to Get Started? Contact Me Today! 

If you want to learn more about Fannie Mae's 5% down payment program and how it can help you achieve your real estate investment goals, contact me at 912-844-9000. I can guide you through the process and help you find the right multi-family property for your needs. I have extensive experience in owning, managing, and rehabbing multiunit properties. At the peak of my investment career, I owned and managed 240 family units. 

Fannie Mae's 5% down payment loan program is a game-changer for multifamily investors, making it easier to enter the market and build wealth through real estate. If you're ready to make your investment dream a reality, let's talk ASAP! 912-844-9000.


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Team Yannett

Since he was 16 years old when his father explained to him how real estate worked with mortgages and leverage, Ed was hooked! Real Estate owners 40X more net-worth! His energy, enthusiasm, and tenacit....

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