Source: Peter Pham, Senior Loan Officer, AmeriHome Mortgage Company, LLC
Publication Date: January 13, 2023
On January 1st, Fannie Mae and Freddi Mac increased the lending limits on 2–4-unit properties in high-cost areas of the country.
2 Units – $1,394,775
3 Units – $1,685,850
4 Units – $2,095,200
These are the highest limits we have ever seen for multi-unit lending from the government agencies. While this is great for borrowers who want to purchase high end multi-family properties, the rates are high. The current 30-year fixed rate loan to finance a 4-unit property is roughly 7.0% with zero points on a high balance conforming loan. This requires 25% down.
AmeriHome currently has very competitive rates on our Portfolio Jumbo loan for multi-unit properties. Our current rates for a 4-unit property with 25% down on a 30-year fixed jumbo loan is 5.750% with zero points. For multi-unit investment properties, we also allow 25% down with a slight increase to the interest rate. Our current rate for a multi-unit investment property is 5.990% with zero points. Our maximum loan amount is $2,500,000 for a 2–4-unit investment properties with a maximum loan to value of 70%. These are very aggressive rates for this type of property.
Rate Update – The CPI numbers released yesterday were very favorable to the markets. The rate markets rallied, and rates fell to their lowest point in the last four months. The current 30-year fixed rate jumbo loan is at 5.625% today with zero points. This is not a rate quote and is intended for real estate professionals only. To qualify for this rate, you must meet the minimum down payment and credit score requirements.
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