Am i correct in my thinking that there is a 1 point adjustment on a 2-unit property? It is a conventional purchase with 20% down and it is owner occupied. There is no way to avoid this adjustment correct? even if it is owner occupied for, say, 5 years? Furthermore, this is an industry wide adjustment right??

Thank You

The adjustments are for all Fannie Mae loans

No way around them except paying with YSP.

Think there is an adjustment for credit score on 2 unit also.

Thats what i thought, thank you for the confirmation.

The borrower has a 709 FICO so there is a .75 hit for a 75-80% LTV on top of it.

The 2 - 4 unit adjustments are expensive.

Had a cash out refinance on 2 unit NOO with 3.875 points in adjustments.

If it is going to be owner occupied you could take it FHA and aviod the adjustment but then your borrower would have to take the MI.  

If you were to go through a "Portfolio Lender" you can avoid the Fannie Mae hit(s).

Hope this helps!

Anytime your looking into a FHA, VA, jumbo, or any other option for refinance more then likely you will find a portfolio lender that will have their own underwriting guidelines and niches.

Voyage Home Loans

Mike Kim