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
From the moment you step through the front door, this home feels like a hug. Every inch has been lovingly cared for, thoughtfully refreshed, and is ready for your story to begin. Whether you're buying your first home or planting roots for the long haul, this one wraps you in warmth and possibility.
NEW CONSTRUCTION AVAILABLE NOW! 3 bedrooms PLUS Den ( technically 4 bedroom house with 2 full baths). Very very high cealings. All 8 ft doors... Double impact front doors, french doors in Den, Laundry room, His hers walk-in closet on master suite, his her sinks, walk in huge shower for 2+ . 32x32 Porcelain Tile throughout house, 2 car garage, quarter acre lot with plenty of privacy from neighbors.
Discover unparalleled comfort in this exquisite home situated in the serene Belle Arbor community! Welcome to the Talison Plan this charming single-story home features an open floor plan where the Living, Dining, and Kitchen areas blend seamlessly, creating a warm and inviting atmosphere.
HIGHLY motivated seller needs quick cash closing! All offers will be considered. Unit offers easy living in quiet Bay Beach neighborhood. Waterfront canal view. Pets welcome (limit 2, 20 lb. max.). Easy access to Bonita Springs, Estero, Naples, International Airport and Gulf of America. Owners have access to condo. amenities as well as Bay Beach Amenities. Assigned under building parking.
Welcome to your dream home in Cape Coral. This brand-new single-story residence showcases the sought-after Quincy Plan, featuring an open layout that seamlessly connects the Living, Dining, and Kitchen areas. The chef’s kitchen delights with elegant cabinetry, stainless steel appliances, and stylish granite countertops.
NEW CONSTRUCTION!! BEAUTIFUL 3 BEDROOM, 2.5 BATHS, 2 CAR GARAGE HOME IN BURNT STORE LAKES! Inviting open floor plan features over 2,100 square feet of living area, double door entry, high ceilings, ample natural lighting, and sliders to screen lanai. Step inside to open living and dining area with tile flooring and views of lanai and greenery.
HUGE PRICE REDUCTION!!!! Live your best island life in this beautiful fully furnished, TURNKEY direct deep-water access island home! AND as a money saving bonus, the affordable flood policy is transferable! Surrounded by incredible nature, world-class fishing and pristine beaches, the open waters of Matlacha Pass are just a short 10-minute boat ride away! This home is located in Matlacha Isles at
Seller offering $5000 for closing cost. Stunning Homes in Lehigh Acres with tong of spaces inside and outside of the house. Welcome to this beautiful home of 4 bedrooms, 2 bathrooms and 2 car garage.
