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.
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.