🏡 House Hacking & Home Affordability

Author

Kyle Seagraves
October 13, 2023

1. 5% Down on 2-4 Unit Homes

Fannie Mae now accepts 5% down payments for owner-occupied 2-4 unit multifamily homes.

  • ⚠️ Policy Change: Fannie Mae now accepts 5% down payments for owner-occupied 2-4 unit multifamily homes starting 11/18/23

  • 💲 Expanded Financing Options: The policy change applies to standard purchases, refinances, and renovation loans for owner-occupied transactions

  • 🏦 Maximum Loan Amount: The maximum loan amount allowed for these properties is up to $1,396,800

  • 🏡 Benefits of the Policy Change: Lower down payment requirements make multifamily homes more accessible and allow buyers to generate rental income

2. How Much Can You Afford?

Curious what a lender could approve you for BEFORE you talk with a loan officer?

We built a calculator that helps you explore:

  • ✅ Fully detailed affordability dashboard

  • ✅ Calculates hidden monthly costs and estimated closing costs

  • ✅ Shows you how to avoid being "house poor"

  • ✅ The maximum purchase price that is most ideal for your situation

  • ✅ Full break down with examples of how lenders find your maximum purchase price

  • ✅ Estimates of the "other" costs of owning a home that most people forget until it's too late

  • ✅ Estimates of the total "cash out of pocket" costs required to buy a home

  • ✅ The results of affordability theories based on your situation created by popular financial teachers and economists

Use the discount code HOME for 20% off

3. Housing Market Echoes 1980s, Not 2008 Crash

Bank of America analysts see 'turbulence' but no housing crash like in 2008

  • 🛠️ Builders and homebuyers: No evidence of overdevelopment or over-leveraging like in 2008

  • 💸 Tight monetary policy: Housing market dealing with fallout from tight monetary policy, similar to 1980

  • 📄 Higher standards: Homebuyers face higher standards and stricter lending practices

  • 🕰️ Similarities to 1980s: Housing market resembles the early 1980s with high inflation and rising interest rates

4. Affordability Crisis Grips US Housing Market

Income would have to jump 55% to make buying a house 'affordable'

  • 💵 Affordability: U.S. incomes would have to increase 55% for the housing market to be considered affordable

  • ⚙️ Factors: Options for affordability include a 35% price correction, 4% decline in mortgage rates, or a combination of both

  • 📈 Market Outlook: Experts believe mortgage rates and home prices are unlikely to decrease soon due to low inventory and high demand

  • 🏡 Inventory: While there has been a slight increase in new listings, it is not enough to ease the pressure on new buyers.

5. Housing Groups Urge Fed to Pause Rates

Housing industry urges Powell and Fed to stop raising interest rates

  • 🙁 Concerns: Real estate officials worry about the impact of rising interest rates on the housing market

  • 💬 Request to Fed: Groups ask the Fed to halt rate hikes and not sell mortgage securities until the housing market stabilizes

  • 🏠 Market Challenges: Housing affordability is worsened by rate hikes and a shortage of available homes

  • 🤔 Fed's Response: The Fed is considering the impact of previous rate hikes and may hold off on further increases.

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