Conventional 25% HB 3-4 Units

This is a reduced down payment program with higher loan amounts. The program has a reduced down payment requirement in comparison to the standard 25% down for 3-4 units. Borrower must have previous landlord experience.

Credit score: 740 minimum
Property type: 3-4 Units
Occupancy: Primary residence
Down Payment: 25% minimum
Loan to Value: 80%     Max. CLTV: 75%
Gift Funds Allowed. No minimum buyer contribution required
Closing cost: Seller and/or lender can pay up to 6%
Debt Ratio: 45% with compensating factors up to 50%


Additional Notes:

  • Standard 3-4 Units – 25% Down, but program allows 20%
  • Condos must be Freddie Mac approved
  • Lender-paid closing cost available
  • Unpermitted additions will not be given any value
  • Bankruptcy 4 yrs, Foreclosure 7 yrs, Short Sale 4 yrs.
  • First time buyer not required. Must be primary residence.
  • Mortgage reserves may be required
  • 75% market rent may be used to qualify
  • Blended ratios acceptable with non-occupant co-borrower
  • Borrower must have 2 year history managing rentals

This page contains program highlights only. See sidebar links for further information and details.

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