Fannie Mae Rules for 2-4 Unit and Investment Properties
House hacking a duplex to fourplex with 5% down, and what investment property pricing really costs.
Every item cites an official source (FHFA, Fannie Mae, Freddie Mac, HUD or VA) and the date we checked it. Last checked Oct 22, 2026.
Official, in effect 5% down on a 2-4 unit home you live in
Since Nov 18, 2023, Fannie Mae allows up to 95% loan-to-value (5% down) on a 2-4 unit home that is your primary residence, through DU. Before that it was 85% for 2 units and 75% for 3-4 units. This does not apply to cash-out refinances, high-balance loans or manual underwriting.
- Price $600,000. You live in one unit and rent the other two.
- Old rule (75% LTV): $150,000 down.
- Current rule (95% LTV): $30,000 down, so the loan is $570,000.
- $570,000 is under the 2026 3-unit limit of $1,288,800, so it is a standard (not high-balance) loan.
Example numbers are for learning only. Your lender's figures will differ.
Source: Fannie Mae research note on 2-4 unit LTV change, Oct 25, 2023 · FHFA 2026 county loan limit list · Checked Oct 22, 2026
Official, in effect Investment property pricing (LLPA matrix, Sept 30, 2026)
Loans on rentals you don't live in carry an extra upfront price adjustment. On Fannie Mae's current matrix it is 2.125% of the loan at 70.01-75% LTV and 3.375% at 75.01-80% LTV, on top of the credit score adjustment.
- 1-unit rental, price $300,000, 25% down: loan $225,000 (75% LTV).
- Investment property adjustment at 70.01-75% LTV: 2.125%.
- Credit score 740-759 at 70.01-75% LTV: 0.375%.
- Total 2.5% × $225,000 = $5,625, usually paid through a higher rate or points. Other adjustments may apply.
Example numbers are for learning only. Your lender's figures will differ.
Source: Fannie Mae LLPA Matrix, updated Sept 30, 2026 · Checked Oct 22, 2026
General information only. Not legal, tax or financial advice. RentToolkit is not a lender, law firm or financial adviser. Mortgage rules change often and lenders can add stricter rules of their own ("overlays"), so confirm with the official source and a licensed loan officer before you act.