One way some buyers are making homeownership more affordable is by buying 2-, 3- or 4-unit homes and living in one of the units… letting the rent help make the monthly payments. Instead of 15-25% down payments required in the past, starting from the weekend after November 18 Fannie Mae conventional home loans will accept only 5% down for the purchase of owner-occupied duplexes, triplexes and four-plexes.
This not only makes home ownership more accessible, it also provides an opportunity to ‘try on’ property investment and being a landlord as you build equity. The maximum loan amount allowed for these 2-4 unit properties is set at $1,396,800, ensuring that larger and more expensive properties can be purchased with flexibility.
Another option for additional income to help pay the mortgage is an ADU (Additional Dwelling Unit) on the property. FHA just came out with a new policy that will allow lenders to use rental income from accessory dwelling units (ADUs). The policy change was done to help increase homeownership opportunities and help with affordable housing.