Have you considered showing 2-4 unit properties to younger and older prospective homebuyers to live in as a primary residence? If yes, you might want to check your market for the availability of these properties that just got more affordable to purchase.
There is an income cap for this Home Possible loan of 80% Area Median Income (AMI) which can be found on the Freddie Mac Home Possible Income and Property Eligibility Tool. First-time homebuyers must complete a Homeownership course. The minimum credit score is noted as 620, and the Freddie Mac Loan Prospect Advisor must receive an approval.
If the homebuyer purchases the multi-family unit to owner-occupy one of the units, rental income of the other units can be used — see the Freddie Mac Home Possible guidelines for details.
This program is especially beneficial in areas where multi-family units are more plentiful. This could boost younger buyers looking for a first home and don’t mind having their home attached to other dwellings that can also produce rental income. To qualify for this loan, you must occupy one of the units.
Multi-family units are often overlooked by families or are sold to investors. But in my area of Florida, I’ve been surprised by the interest in multi-family dwellings by younger potential homebuyers and even retirees that want to be closer to neighbors. I’ve even seen a communal garden pop up in the courtyard of one of these properties!
Look into this updated Freddie Mac Home Possible program that just made purchasing a 2-4 unit property more affordable!
If you are a client, loan originator or realtor who wants to learn more about these programs, contact Pam today or call 727-534-3445.