Federal Fees Increase for Vacation and Second Homes
Starting April 1, 2022, the Federal Housing Finance Agency (FHFA) will be introducing new fee increases for second and vacation home loans, as well as high balance loans.
Until this announcement, second and vacation properties had similar pricing and guidelines as primary residences. Now, after April 1, 2022, second properties will pay higher fees and have to meet stricter guidelines, similar to investment properties.
Federal Fees To Help Fist-Time Homebuyers
These fee increases are a result of the FHFA’s continuing efforts to help first-time homebuyers, especially those of low- or -middle income, achieve their goals of home ownership.
According to Acting Director Sandra L. Thompson, the “… action represents another step FHFA is taking to strengthen the Enterprises’ safety and soundness and to ensure access to credit for first-time home buyers and low- and moderate-income borrowers.”
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These fee increases are a result of the FHFA’s continuing efforts to help first-time homebuyers
Federal Fees and Second Home Loans
Second home loans will still adhere to the same factors as primary home loans, so Federal Fees will still depend on things like your location, income and credit score.
For example, first-time homebuyers in high-cost areas with incomes at or below 100% of their area’s median income will not be subject to high-balance loan fee increases. Programs like HomeReady, Home Possible, HFA Preferred and HFA Advantage will also be exempt from these fee increases.
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Second home loans will still adhere to the same factors as primary home loans, so Federal Fees will still depend on things like your location.
If you’re wondering how Federal Fees may affect the search for a home, our experienced loan officers are here to help! 👍🏡
We´re here to give you the best guidance so you can accomplish your dream of becoming a homeowner.
Contact DG Pinnacle today!
This article was originally published on minutemortgage.com