As we continue into 2024, prospective homebuyers and homeowners looking to purchase or refinance are…
2-4 Units @ 5% Down
This weekend is THE weekend! Starting today, Fannie Mae has increased the allowable Loan-to-Value to 95% for primary purchases and rate and term refinances on 2-4 unit properties. No longer does a buyer have to put 15% down on a duplex or 20-25% down on a 3-4 unit. I’m a big believer in building wealth through real estate and this is the ultimate wealth building hack! Buying a primary tri-plex as an example, live in one unit and rent out the other two to cover the mortgage. You’ve been able to do this via 3.5% down FHA, but the bulky lifetime mortgage insurance and the impossible to pass self-sufficiency test didn’t make that option appealing. Now, you can buy that tri-plex using a conventional loan, put 5% down and drop the mortgage insurance once you’ve built up the equity. PLUS, you can be a first time home buyer and get lower interest and mortgage insurance rates with the HomeReady program; or roll the renovation costs into the loan with the HomeStyle Renovation program. GAME CHANGING!
Lower Rates Just In Time For the Holidays
WOW, In the last 30 days rates dropped from 8% to 7.25% (per Mortgage News Daily), saving your buyers hundreds every single month. A weak Jobs Report and Unemployment inching up from 3.8% to 3.9% kicked off a downward trend in rates. This was further supported by a lower than expected Core CPI and a miss on PPI inflation reports. Then jobless claims bounced up this week to a three-month high showing signs of a cooling labor market. Consumer confidence is dragging as it dropped for the third straight month in a row giving us hope of reduced spending and a slowing economy. All of this dropping the 10-year treasury from 5% to 4.43% and giving the Fed the okay to hold. As we wait and watch the jobs and inflation reports over the next several months, we have to take advantage of gifts when given 😉 Add this drop in rates to the new 750,000 loan limit, the Rueth Team free refinance guarantee, a quick 10-day closing, and sellers who are willing to negotiate… your buyers just got an incredible gift for the holidays!
Make sure they know!