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FHFA HIKES FEES FOR HIGH BALANCE AND SECOND HOME MORTGAGE What Does This Mean for The Lending Industry?
Planning to buy a vacation home? Hold that though.
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t’s 2022 and in case you haven’t noticed, everything is getting so expensive, and that includes homes, but I bet you already knew that. After all, the prices of homes have been surging since 2010. The Federal Housing Finance Agency recently introduced new upfront fees for some highbalance and second home loans. The fees will increases between 1.125% and 3.875%, also tiered by the loan to value ratio. The changes to the fees are expected to go into effect beginning April 1, 2022. 16 | FEBRUARY 2022
So what does this mean? If you are trying to secure a loan above the conforming loan limits or buying a vacation home, you need to act sooner to save some extra cash. This pricing increases targets consumers who are applying for the conventional high balance loans and those who want second properties. Just to paint a picture for your perspective, conventional loans in the country make up about 64% of home purchase loans according to the National Association of Realtors. On the other hand, high balance mortgages are those that have a balance above the conforming loan limits which is set at $647,200 for 2022. After two years, and probably this will be the third year being terrorized by the pandemic, you
