Matt Porcaro

So I didn't have I didn't have to pay for to like a mortgage and rent at the same time. However, they have it built into the loan because they know living with their family. Yeah. But but one of the cool things and one of the cool features is like they understand that you might be paying housing for another place while this is being renovated. So they give you the option to wrap up to now.

So I didn't have I didn't have to pay for to like a mortgage and rent at the same time. However, they have it built into the loan because they know living with their family. Yeah. But but one of the cool things and one of the cool features is like they understand that you might be paying housing for another place while this is being renovated. So they give you the option to wrap up to now.

They just changed up to nine months of the mortgage into nine of your mortgage payments into the loan. So now you don't you could buy the property, not pay out of pocket for it while it's being renovated.

They just changed up to nine months of the mortgage into nine of your mortgage payments into the loan. So now you don't you could buy the property, not pay out of pocket for it while it's being renovated.

And the coolest thing about it is, again, just very recent. So here's the thing, right? Obviously, we know what's going on with the market, right? Everything's changing. Everything's getting more and more expensive. It's getting harder and harder for millennials to buy a house, let alone renovate it.

And the coolest thing about it is, again, just very recent. So here's the thing, right? Obviously, we know what's going on with the market, right? Everything's changing. Everything's getting more and more expensive. It's getting harder and harder for millennials to buy a house, let alone renovate it.

um we saw it was all in the news like there was a big downturn in the in the amount of mortgages being endorsed right it was like an all-time low or the lowest in 18 years whatever it was right people were just not buying homes yeah they thought that jacking the interest rates they thought would you know help it but it didn't actually people were just like well we can't afford anything and sellers like we can't go anywhere right so it it did the opposite like you know value stayed up so fha and fannie mae

um we saw it was all in the news like there was a big downturn in the in the amount of mortgages being endorsed right it was like an all-time low or the lowest in 18 years whatever it was right people were just not buying homes yeah they thought that jacking the interest rates they thought would you know help it but it didn't actually people were just like well we can't afford anything and sellers like we can't go anywhere right so it it did the opposite like you know value stayed up so fha and fannie mae

even though they're government-backed entities, they're still entities and they still need to make money. And what happened was that they had to go back to the drawing board and be like, well, how else are we going to continue to make these programs more feasible, more attractive? Because we got to do something because we're not bringing in any business. We have no mortgages being endorsed.

even though they're government-backed entities, they're still entities and they still need to make money. And what happened was that they had to go back to the drawing board and be like, well, how else are we going to continue to make these programs more feasible, more attractive? Because we got to do something because we're not bringing in any business. We have no mortgages being endorsed.

So they made a lot of changes recently. Number one being that Fannie Mae, typically FHA was the only product that you could buy up to a four-unit property with only 3.5% down or a low down payment if you own or occupy it, right? With Fannie Mae, you could buy a quadplex, but you would have to put 25% down, even if you lived there.

So they made a lot of changes recently. Number one being that Fannie Mae, typically FHA was the only product that you could buy up to a four-unit property with only 3.5% down or a low down payment if you own or occupy it, right? With Fannie Mae, you could buy a quadplex, but you would have to put 25% down, even if you lived there.

Fannie Mae changed it where now you can buy up to a four-unit property for only 5% down. And one of the big issues people were finding with FHA, we were just talking about it with one of the guys over here about the self-sufficiency test, right? FHA has this thing where like, if the property doesn't pay, it makes sense. I mean, it's common sense.

Fannie Mae changed it where now you can buy up to a four-unit property for only 5% down. And one of the big issues people were finding with FHA, we were just talking about it with one of the guys over here about the self-sufficiency test, right? FHA has this thing where like, if the property doesn't pay, it makes sense. I mean, it's common sense.

But FHA had this test where if the other three units, if you're living in a quadplex, if the other three units couldn't cover at least 75% of the mortgage, They wouldn't give you the loan. And it knocked down a lot of people's opportunities to buy quadplexes. It also exists with triplexes. Same kind of deal. Fannie Mae stepped into the mix. They don't have that same requirement.

But FHA had this test where if the other three units, if you're living in a quadplex, if the other three units couldn't cover at least 75% of the mortgage, They wouldn't give you the loan. And it knocked down a lot of people's opportunities to buy quadplexes. It also exists with triplexes. Same kind of deal. Fannie Mae stepped into the mix. They don't have that same requirement.

So as long as your income can do it and you're able to factor in that future rental income, you can do this now. And then Fannie Mae, unlike FHA, Fannie Mae allows you to repeat the process. They allow you to have up to 11 of these in your name at any given time, where FHA only allowed one. What? So I can have 11 of these? Yes. Including your primary.

So as long as your income can do it and you're able to factor in that future rental income, you can do this now. And then Fannie Mae, unlike FHA, Fannie Mae allows you to repeat the process. They allow you to have up to 11 of these in your name at any given time, where FHA only allowed one. What? So I can have 11 of these? Yes. Including your primary.

As long as you follow the guidelines on what you're doing, you have something that's going to cover the debt on the previous property and you qualify income wise and you're moving in earnest into the next property. Absolutely. Sanity to me. Yeah. And 5% down every time.

As long as you follow the guidelines on what you're doing, you have something that's going to cover the debt on the previous property and you qualify income wise and you're moving in earnest into the next property. Absolutely. Sanity to me. Yeah. And 5% down every time.