Real Estate News Roundup: The New Entry Point to Chicago’s Multifamily Properties
The ebb and flow of the real estate landscape is nothing short of fascinating, and as we move closer to the end of 2023, a new wave is set to shape Chicago’s multifamily property scene. Fannie Mae has recently unveiled changes that have set the industry abuzz. And for those in Chicago looking to buy a 2-4 unit property for owner-occupancy, this could be your golden ticket.
The Breakdown:
Beginning November 20th, Fannie Mae will now support mortgages with a mere 5% down payment for owner-occupied 2-4 unit homes. This is a substantial departure from the previous norms where a 2-unit property needed a 15% down payment, and 3-4 unit properties required 20% down.
The New Caps:
With this update, the loan limits have also been defined:
- 2-unit properties: $929,850
- 3-unit properties: $1,123,900
- 4-unit properties: $1,396,800
- Furthermore, the absence of a self-sufficiency test streamlines the buying process even more.
So, what does this mean for Chicago’s potential homeowners and the local housing market?
This initiative opens the door to a larger pool of homebuyers, especially those who were previously deterred by hefty down payment requirements. More homeowners can now consider multifamily units as a viable option, either for larger family accommodations or as a combined investment-live in opportunity.
With properties in cities like Chicago always in high demand, this move by Fannie Mae could further stimulate the multifamily home segment, making it a hotspot for both buyers and investors.
Fannie Mae’s decision marks yet another chapter in the ever-changing narrative of the real estate industry. For those navigating these waters, particularly in a bustling market like Chicago, aligning with a seasoned Realtor® becomes even more pivotal. For those interested in taking the next step to finding their dream property in Chicago, contact someone from our team here.
