This is a YouTube video titled "New Conventional 5% Down on Multi-Units!" containing a single-speaker explanation from October 7, 2023, about updated conventional loan requirements for multi-family properties, specifically the new 5% down payment option for 2 to 4 unit properties when the owner lives in one unit and rents out the others.
When purchasing a multi family two to four unit property, it used to be a very wide difference between what FHA and conventional required for the minimum down payments. Fha if you lived in one of the units, they would allow you to do a 3.5% down, which is normal for FHA loans. Even with renting the other units out. Conventional if it was a two unit, you have to do 15% down bare minimum. Three and four units 25% down minimum. Well, they are updating that now so we can offer a 5% down multi unit 2 to 4 unit conventional loan. As long as you live in one of the units, you can rent the others out. And also to qualify, you can use the assumed rental income from those other units as additional income on top of your actual daily income to help you qualify for that. So you live in one of the units. 5% down two to four unit properties. Conventional financing.
