# See how two friends bought a prime Bay Area home with $36K each.

Buying a home in the pricey Bay Area may as well require a big startup exit.

They beat the odds with the help of a little-known Fannie Mae program.

The primary multi-family program allows them to pool their money and place only 5% down payment.

They’ll each live in a unit and use the rental income from the other units to offset their mortgage.

# How will you make use of the Fannie Mae program?

**Home Affordability Calculations**

These calculations utilize the [Fannie Mae multifamily home loan program](https://www.mortgageresearch.com/articles/fannie-mae-5-down-multifamily-homes/) to put a 5% down payment for a 30 year fixed mortgage at a 6.5% interest rate (rates subject to market conditions) on a triplex property.

**Home Price** **‍**

The total down payment available is calculated by multiplying the down payment amount by the total number of co-buyers in the group. The home price is then calculated by dividing the total down payment amount by 0.05 to simulate a 5% down payment. If the amount is greater than the max triplex loan limit of $1,033,000 then that limit amount is used. Higher loan limits do exist for quadplexes.

**Equity Growth**

The equity growth is calculated by dividing the pro rata projected equity value in the home in 5 years by each member’s down payment amount. The projected 5 year equity value factors in the home locality’s forecasted appreciation along with the principal contribution portion of each monthly mortgage payment. The return is significantly higher than the projected appreciation of the home because it is calculated relative to the down payment amount, which makes for a more accurate measure of return on initial investment.

**Monthly Cost** **‍**  
**‍** The monthly cost is calculated by subtracting the monthly mortgage amount from the city's projected median rent for a 3 bed unit, and dividing by the group size. This assumes one unit is occupied by the buyer and the remainder are rented out.

What homebuying with Nestment looks like.

Kickoff call
- Meet your homebuying coach.
- Create your buying strategy & roadmap together.

Explore financing options
- Review loan products that fit your needs.
- Meet lenders & get pre-approved.

(🎉 major milestone!)

Choose an agent
- Get matched with a few vetted agents.
- Choose & sign with the best fit.

Align your buying team
- Lender underwrites pre-approval.
- Connect your lender & agent to strategize.

Bid and close on your home!
- Analyze listings together & make offers.
- Close & secure your title.