Good Morning!
FHFA (Fannie Mae’s and Freddie Mac’s conservator) announced March 10 that they are limiting new loans secured by second homes or investment properties to 7% of the overall loans they purchase (roughly HALF their historic levels!), effective April 1.
What does this mean to borrowers seeking investment/2nd home mortgages?
Many mortgage lenders have already, or will soon add costs to these type of loans.
These changes won’t affect Non QM investors for now, but Non QM loans carry higher rates generally.
Bottom line – you will be paying higher rates / fees for Second Homes and Investment Properties going forward.
That’s it for today.
Have a great week!
Brett