Fannie Mae changes for these type of mortgages: second home mortgages, investment properties, and high balance loans. There will be additional costs for mortgage buyers of second homes and investment property mortgages. Loan level price adjustments for second home buyers, investment property buyers, and high balance loan customers for new purchase loans and mortgage refinancing.
A high balance LLPA will not apply if any borrower on the loan is a first–time homebuyer. Total qualifying income of all borrowers is less than or equal to 100%.Fannie Mae is also introducing a new loan–level price adjustment (LLPA) for cash–out refinance transactions. This LLPA will apply to all cash–out refinance transactions regardless of the borrower’s occupancy status.In addition, Fannie Mae is increasing the minimum credit score requirement for all borrowers on all mortgage products to 620. This change will take effect on May 1st, 2023.Fannie Mae is also introducing a new loan–level price adjustment (LLPA) for loans with a loan–to–value (LTV) ratio greater than 95%. This LLPA will apply to all mortgage products regardless of the borrower’s occupancy status.
FAQs
1. What types of mortgages are affected by Fannie Mae’s recent changes?
The recent changes affect second home mortgages, investment properties, and high balance loans. These changes include additional costs for new purchase loans and mortgage refinancing.
2. What are Loan Level Price Adjustments (LLPAs)?
LLPAs are additional fees based on specific loan characteristics such as property type, credit score, and loan-to-value (LTV) ratio. These fees are added at the time of loan origination and can impact the interest rate or closing costs.
3. Are there any exemptions from the high balance LLPA?
Yes, a high balance LLPA will not apply if at least one borrower on the loan is a first-time homebuyer and the total qualifying income of all borrowers is less than or equal to 100% of the area median income (AMI).
4. What is the new LLPA for cash-out refinance transactions?
Fannie Mae has introduced a new LLPA for all cash-out refinance transactions, regardless of the borrower’s occupancy status.
5. What is the minimum credit score required under the new Fannie Mae guidelines?
Fannie Mae has increased the minimum credit score requirement for all borrowers on all mortgage products to 620, effective May 1st, 2023.
6. What is the LLPA for loans with an LTV ratio greater than 95%?
A new LLPA has been introduced for loans with an LTV ratio greater than 95%. This adjustment applies to all mortgage products, irrespective of the borrower’s occupancy status.
7. Can borrowers avoid these new fees?
There may be strategies to avoid or minimize the impact of these new fees. For personalized advice and information on how to potentially avoid these fees, you can call 239-370-1513.
8. When did these changes take effect?
The changes, including the increased credit score requirement and new LLPAs, took effect on May 1st, 2023.
9. Who should I contact for more details?
For more information or to discuss how these changes might affect your mortgage options, call 239-370-1513.
There are ways to avoid Fannie Mae’s new additional fees. Call for more information. Call 239-370-1513
Move-in Ready Townhome in Gated Community – Prime Naples Location!
Welcome to your new home in the sought-after gated community of Bristol Pines in beautiful Naples, Florida. This move-in ready, two-story townhome features 3 spacious bedrooms, 2.5 bathrooms, and an open-concept living area that blends comfort, style, and convenience.
Stunning Gulf-Front Penthouse | 3 Beds + 3.5 Baths | Boat Dock | Fully Renovated. Experience coastal luxury at its finest in this completely renovated 3-bedroom, 3.5-bathroom penthouse in the exclusive Villas of Vanderbilt Beach. Offering unobstructed panoramic Gulf views, this top-floor condo is a rare find.
Under Construction - Step into Cali at Brighton Pointe — a welcoming, smart-enabled home that combines style, functionality, and everyday comfort. Tucked into a peaceful neighborhood, every home here features integrated smart home technology and modern design touches.
Under Construction - Welcome to Brighton Pointe! A quiet conveniently located community where every home includes a smart home technology package! This appealing one-story home includes many contemporary features, and an open-concept design to enhance the wonderful feel of this home.
Brightwater Lagoon is a master-planned community of new homes in North Fort Myers, FL — where life feels like an endless day at the beach. Designed on a single story, this home is great for family life. Off the foyer is a separate bedroom perfect for guests, along with a den that can transform for various needs.
Experience Brightwater Lagoon, where life feels like an endless day at the beach. This stunning master-planned community offers six acres of crystal clear water surrounded by sand, swim-up bars and sunset views. With a beautiful six-acre lagoon, resort-style amenities and top-tier entertainment, Brightwater Lagoon provides an unparalleled lifestyle focused on recreation, relaxation and wellness.
Not your typical new construction, this home delivers LOCATION, STYLE, MODERN FINISHES, AND PRIVACY.
It features 3 BEDROOMS PLUS A DEN, ideal for a home office, playroom, or flex space, and a SPLIT BEDROOM FLOOR PLAN that offers both comfort and separation. The OPEN-CONCEPT LAYOUT provides clearly defined areas while maintaining a spacious and airy feel.
Experience the tranquility of Golden Gate Estates in this beautifully crafted 2023-built home, nestled on a spacious 2.73 acre lot. This 3 bedroom + den, 2 bathroom residence combines modern design with serene, country-style living. Inside, you'll find an open-concept layout perfect for entertaining or relaxing, with abundant natural light throughout.
Under Construction - The appealing one-story home includes many contemporary features, and an open-concept design with 8’ ceilings that enhance the wonderful feel of this home. The well-appointed kitchen includes a large island perfect for bar-style eating or entertaining, a walk-in pantry, and plenty of cabinets and counter space.
Under Construction - The appealing one-story home includes many contemporary features, and an open-concept design with 8’ ceilings that enhance the wonderful feel of this home. The well-appointed kitchen includes a large island perfect for bar-style eating or entertaining, a walk-in pantry, and plenty of cabinets and counter space.
Amazing home built in a 2.5 acres lot, in the area of Golden Gate Estates, features 3 bedrooms + Den, 2.5 bath, & 2 car garage! Living area of 1,900 sq.ft and a grand total of 2,627 sq.ft. Upgrades include wood plank porcelain tile throughout, crown molding, quartz countertops, stainless steel appliances, and solid wood cabinets! The living room and master suite boast tray ceilings.
Under Construction - Welcome to Bentley Crossing! An amenity rich gated community that's conveniently located, where every home includes a smart home technology package! This appealing one-story home includes many contemporary features, and an open-concept design to enhance the wonderful feel of this home.
Under Construction - Welcome to Bentley Crossing! An Amenity rich gated community that's conveniently located, where every home includes a smart home technology package! This appealing one-story home includes many contemporary features, an open-concept design enhances the wonderful feel of this home.
Under Construction - Welcome to Bentley Crossing! An Amenity rich gated community that's conveniently located, where every home includes a smart home technology package! The Lakeside floor plan is a gorgeous 5 bed, 3 bath home all on one level. It also features a two-car garage.
Under Construction - Welcome to Bentley Crossing! An amenity rich gated community that's conveniently located, where every home includes a smart home technology package! This appealing one-story home includes many contemporary features, an open-concept design enhances the wonderful feel of this home.
Welcome to Bentley Crossing! An amenity rich gated community that's conveniently located, where every home includes a smart home technology package! This appealing one-story home includes many contemporary features, an open-concept design enhances the wonderful feel of this home.
Brand new home is under construction and expected to complete August 2025. This Stardom features 3 bedrooms, 2.5 baths, den, and 3 car garage. Impact glass, stainless steel built-in appliances, white and burlap color cabinets, custom backsplash, and quartz countertops, pocket sliding doors at gathering room, enlarged walk-in shower in owners bath, and guest bath has an upgraded walk in shower.
Spanning one of the largest maintenance-free floor plans in the area, this well-maintained end unit in Meadows of Estero offers a spacious and versatile layout with three bedrooms plus an additional sitting area in the owner’s retreat that can easily function as a home office or flex space.