Buying a Multifamily Home in New York is Getting Easier

The large amount of inflation that we've seen around the country in the last few years has made it quite difficult for people looking to purchase a house. This is an issue that people have been dealing with all over, especially in some parts of New York.

The Buffalo and Western New York region, has been one of the hottest housing markets in the country, and several people have struggled to purchase a house. Part of the reason is the sheer increase in the prices of houses, along with the amount of money that potential homebuyers need to put down in order to make a purchase.

However, thanks to a coming change in the mortgage industry, one of those things is about to get a little easier.

Fannie Mae Is Decreasing the Down Payment Needed To Purchase for Multifamily Homes

According to a recent report by HousingWire, Fannie Mae, the government-sponsored enterprise that assists homebuyers in purchasing and refinancing homes, is making a change in the amount of money that's needed to buy a 2-to-4 family home that costs less than $1,396,800.

Currently, if you want to buy a duplex, three-unit, or 4-plex in New York, you can expect to have to put down at least 15% of the cost of that house as a down payment. Starting November 18, 2023, Fannie Mae is lowering that down payment percentage to 5%.

Under the current rules, you would need a down payment of at least $30,000 to purchase a $200,000 double for sale. Once this policy change takes effect, that same house will only need a $10,000 down payment.

The down payment amounts of multifamily homes are not the only policy change that Fannie Mae is making; in addition to this, Fannie Mae is also updating the rules for self-employed people to qualify for a mortgage, along with the rules for people looking to buy manufactured housing (mobile homes).

Officials hope that all of these changes will make it easier for New Yorkers to buy homes.