Page 64 - AAGLA-FEB 2022

Member Update
FHFA Price Increases for High-Balance and Second
THome Loans
By Laura Hertz, Loan Officer, CSMC Mortgage
he Federal Housing Finance Agency (FHFA) has introduced new upfront fees for some high-balance and second- home loans sold to Fannie Mae and Freddie Mac. Upfront fees for high balance loans will increase between 0.25% and 0.75%, tiered by the loan-to- value ratio. For loans on second homes,
the upfront fees will increase between 1.125% and 3.875%, also tiered by loan-to-value ratio. “High balance” loans are loans that generally exceed $647,200 in borrowed monies. This new pricing will take effect April 1, 2022.
These higher fees are an effort by the FHFA to open up more home buying opportunities to first-time homebuyers. In a statement, FHFA Acting Director Sandra Thompson said that the fee increases are another step FHFA is taking to both strengthen the government-sponsored enterprises’ safety and soundness, and ensure access to credit for first-time homebuyers and low- and moderate-income borrowers.
So, what does this all mean? With the big fee increases, it may be preferable to purchase an investment property over a second home. Also, the investment loans are often easier to qualify as these types of loans offer several unique loan options. CSMC Mortgage specializes in investment loans of all kinds, including loans that you can qualify for based just on rent, equity and assets. Interest only on 30- and 40-year loans will make refinancing or purchasing your investment
property a better cash flow. options could be available.
Reach out today to see what
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The author, Laura Hertz, is a Loan Officer at CSMC Mortgage located in Westlake, California. For more than 25-years, Laura has been a leading mortgage consultant and she specializes in single-family and 1-to-4-unit investment properties. Her approach to lending is to always be upfront and honest with clients, and proactively guides borrowers through the loan process from beginning to end. For more information, contact Laura at (805) 724-0755 or laurahertz@csmcmortgage.com.
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