Tag: Multi-Unit

Exceptions to Down Payment for First Time Buyers Purchasing a 2-4 Unit

Question: Is there an exception to the down payment requirement of 15% for a first-time homebuyer purchasing a 2-4 Unit? Answer: Unfortunately, there are no exceptions for this. Whether you use the standard Fannie Mae or Freddie Mac product, or their Home Possible or HomeReady products, the LTV for a 2-unit O/O property is a […]

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USDA and Multi-Unit Properties

Question: Will USDA allow a Two-Unit property if the borrower lives in one of the units? Answer: Unfortunately, no. One-unit properties are all they will allow. Social Media Post: Did you know that USDA will only allow a one-unit property and not a 2-4 unit property? However, FHA and conventional will allow multi-unit properties.  If […]

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If a home is zoned as a 2-Unit, but the appraiser states its “best use” is a single-family, will FHA accept that?

Answer: While FHA requires that a property either conform to the land zoning or be considered ‘legally non-conforming’ (see guideline below) so that it can be rebuilt if destroyed, I believe there’s some confusion here regarding ‘zoning’ vs ‘property type’.  While a residential area (one lot or many lots) can be zoned for a certain […]

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Fannie Mae & Freddie Mac – Second Home Multi-Unit: What is the maximum LTV for a 2-Unit purchase of a second home for both Fannie and Freddie?

Answer: It varies. If you are using their standard products, the LTV’s are limited to 85% for Fannie Mae and Freddie.  If using Freddie Mac’s Home Possible product (where there are income limitations) then the LTV is 95% and Fannie Mae’s HomeReady product still limits you to 85%. The most flexible is Freddie Mac’s Home […]

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