Blog Post Photo (6)

Unlocking Doors: Fannie Mae’s 5% Down Payment Revolution in Multifamily Investing

Investing in multifamily properties has just taken a leap toward accessibility with groundbreaking changes in requirements. Fannie Mae, a key player in the mortgage industry, has implemented a revolutionary 5% down payment policy for 2-4 unit homes, effective since November 18, 2023123. This transformative policy shift significantly lowers the financial barrier, making multifamily investments more attainable for potential investors.

Key Points of Fannie Mae’s New Policy:

1. Down Payment Slashed

Previously, investors faced higher down payment requirements, acting as a deterrent for many. However, Fannie Mae’s revision now allows a minimal 5% down payment, a game-changer for those looking to enter the multifamily property market1.

2. Loan-to-Value (LTV) Ratio

The updated guidelines permit an LTV ratio of up to 95%, providing investors with increased leverage and flexibility in financing their multifamily investments2.

3. Loan Amount Cap

For 2-4 unit homes, Fannie Mae has set the loan amount cap at $1,396,800. This adjustment facilitates the acquisition of larger properties, encouraging investors to explore opportunities in the multifamily sector3.

4. Conforming Loan Limits in 2024

In 2024, the conforming loan limits have expanded, ranging from $981,500 for two-unit properties to $1,474,400 for four-unit properties. This widening range offers more opportunities for investors to diversify their portfolios4.

5. Owner-Occupied 2-4 Units

Fannie Mae’s new policy not only benefits investors but also significantly reduces down payment requirements for owner-occupied 2-, 3-, and 4-unit properties. This encourages homeownership while fostering investment in multifamily dwellings5.

Embracing Opportunities

These changes by Fannie Mae have swung open doors for investors to explore multifamily opportunities with reduced financial constraints. The 5% down payment policy, coupled with the increased loan-to-value ratio and higher loan amount cap, makes 2-4 unit properties more accessible and attractive. As the real estate landscape evolves, these new policies position multifamily investments as a compelling avenue for those looking to diversify their investment portfolios.

Seize the Moment: A New Era for Multifamily Investment Beckons!

Ready to embark on a journey into the thriving world of multifamily investing with Fannie Mae’s game-changing 5% down payment policy? If you’re eager to seize this opportunity and explore the accessible landscape of owning 2-4 unit properties, reach out to us today. Let’s turn your investment dreams into a reality!


  1. LinkedIn – Fannie Mae’s New 5% Down Payment Policy for 2-4 Unit Homes 2
  2. MyAmCap – New 95% Loan to Value (LTV) in Fannie Mae 2-4 Unit Guidelines 2
  3. Mortgage Equity Partners – Fannie Mae introduces 5% down payment opportunity for multi-family homes 2
  4. LinkedIn – New 2024 Conforming Loan Limits Bring More Opportunities
  5. National Mortgage Professional – Fannie Mae Slashes Down Payment Requirements For Owner-Occupied 2-4 Units