5% down conventional mortgage, on a 2 – 4 unit building. Min. credit score 620.

You can now buy a multi unit home with 5% down with a conventional mortgage. Min. credit score is 620.

FHA used to be the only way to buy a multi unit property with very little money down 3.5%. That has now changed Fannie Mae will allow only 5% down payment on a 2 – 4 unit property.

The biggest benefit of this program is buyers can buy a more expensive multi unit with conventional financing. Another benefit is there is no FHA Self Sufficiency test. This test knock out a lot of the more expensive multi units from being bought with an FHA mortgage.

You can use the rental income from the other units to help you qualify.

The down payment and closing costs can be a gift from a family member. If you have the seller pay your closing costs you can now buy a multi unit with a conventional mortgage with no money out of your pocket.

A conventional loan will be a little more difficult to qualify for than an FHA mortgage. Conventional loans have lower debt to income qualifications and the credit scores have to be higher than an FHA loan. With FHA you only need a 500 credit score not a 620 credit score. Conventional loans are also tougher on significant derogatory credit issues, like bankruptcies, foreclosures, and short sales. Lastly conventional loans require you to pay off any judgement you may have on your credit report versus FHA which will allow you to setup a monthly payment plan.

Barclay Butler Financial Inc. is currently offering the 5% down program. If you are interested in either purchasing or refinancing with this program please contact us via phone or text at 224-420-9990 or email (bbutler@barclaybutlerfinancial.com)

Barclay Butler Financial Inc. also offers numerous other mortgage programs. You can click here to see our brochure