How to Buy or Renovate a 2-4 Unit Property with Only 5% Down New Rules That Can Help You Build Wealth with Less Cash Upfront

Jul 14, 2025 | News

🏡 Why This Change Matters

Dreaming of owning a multi-unit property, but thought the down payment was out of reach? That just changed. As of November 18, 2023, Fannie Mae now allows you to buy or renovate a 2–4 unit property with just 5% down.

Before this update, buyers needed 15–25% down, which made multi-family ownership feel impossible for many people—especially first-time homebuyers and those with limited savings. Now, this opportunity is more accessible than ever.

Let’s break down the two powerful ways this new rule can help you.

 

1️⃣ Buy a 2–4 Unit Property with 5% Down

In the past, buying a duplex or triplex meant coming up with tens of thousands more in upfront cash. Now, only 5% down is required, which puts this dream within reach.

Why it’s a big deal:

  • You can live in one unit and rent out the others.
  • The rent can help cover your mortgage.
  • You start building wealth from day one.

This change creates a smart path toward house hacking, passive income, and long-term real estate growth.

 

2️⃣ Renovate a 2–4 Unit Property with 5% Down

Let’s say you find a fixer-upper. It may not look perfect now, but that’s where Fannie Mae’s HomeStyle® Renovation loan comes in.

Here’s how it works:

  • Finance up to 95% of the completed value, including renovations.
  • Roll the cost of updates into your loan.
  • Turn a worn-out property into a cash-flowing asset—with minimal out-of-pocket cost.

💡 This is a game-changer for investors and first-time buyers alike.

 

🔢 Number of the Week: 5%

Just 5% down can open the door to your future income property. Whether you’re buying or renovating, this update is one of the most powerful tools in today’s mortgage market.

 

💬 Final Thought

This Fannie Mae change could be the opportunity you’ve been waiting for. Whether you’re a first-time buyer, a growing family, or a future investor, owning a multi-unit property just got a whole lot easier.

Want help running the numbers or seeing what you qualify for? Let’s connect—this opportunity might be closer than you think.