Fannie Mae’s New 5% Down Option for Multifamily Homes: What You Need to Know

Published: April 18, 2025

Good news for aspiring homeowners and small-scale investors: buying a multifamily property just became a lot more accessible.

In a significant policy update, Fannie Mae has lowered the minimum down payment for owner-occupied 2-, 3-, and 4-unit properties to just 5%, effective from the weekend following November 18, 2024. Previously, buyers faced steep down payment requirements ranging from 15% to 25% for these types of homes.

This change is a major step forward for anyone looking to combine homeownership with real estate investing—especially first-time buyers or those seeking to offset their mortgage through rental income.

What Is a Multifamily Loan?

A multifamily loan is a mortgage used to purchase residential properties with two to four separate living units, such as duplexes, triplexes, or four-plexes.

Unlike single-family loans, these typically come with higher loan limits and unique underwriting criteria. Lenders often consider the income potential of the property—not just the borrower’s personal income—when determining eligibility.

Why Fannie Mae’s New Policy Matters

With this policy change, more buyers can now afford to enter the multifamily market. Here's how the new guidelines make a difference:

✅ Lower Down Payments

Borrowers can now purchase a 2- to 4-unit owner-occupied property with just 5% down, significantly reducing the upfront cost of homeownership.

✅ Broad Loan Program Eligibility

The reduced down payment applies to a range of loan products, including:

• Standard purchases
• No-cash-out refinances
• HomeReady® loans
• HomeStyle® Renovation loans

✅ Higher Loan Limits

Eligible buyers can borrow up to $1,396,800, opening the door to larger or more expensive multifamily properties.

✅ Easier Qualification for 3-4 Unit Homes

Fannie Mae has also removed the FHA self-sufficiency test for 3- and 4-unit properties, making it easier for buyers to qualify without having to meet strict rental income thresholds.

The Bottom Line

Fannie Mae’s updated guidelines represent a huge win for potential homeowner-investors. Whether you’re looking to house hack, reduce your monthly housing costs, or take the first step into real estate investing, this new 5% down payment option gives you more flexibility and fewer barriers to entry.

Ready to Explore Your Options?

With more accessible financing now in place, it’s a great time to consider a multifamily property. Check your eligibility, compare loan programs, and start planning your path to ownership today.

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Thinking of investing in real estate or buying a home that pays you back?

At Ameripro Mortgage LLC (NMLS# 855363), we’re excited to help you take advantage of Fannie Mae’s new 5% down payment option for multifamily homes. Whether you're dreaming of house hacking or building long-term wealth through rental income, our team is here to guide you every step of the way.

📞 Call us at 208-228-5663 or visit www.ameripromortgage.com to explore your options today!