Interest Rate Hikes for Second Homes/Investment Properties

[Derek Schetselaar]

Just wanted to notify everyone of this!

A new development took place in the last 24 hours regarding second homes and investment properties. In an agreement with the US treasury during the final days of Trump’s time in office, both sides worked out a deal where aggregators (investors) are limited in percentage of total loans that can be second homes or investment properties. This goes into effect for loans delivered after April 1. You can read more about the memo below. The old administration had in mind to steer Fannie/Freddie into doing a larger percentage of owner occupied while leaving the investment/second home realm to “private money”.

https://singlefamily.fanniemae.com/media/25286/display

This is going to impact rates from 3/8ths in RATE or more on second homes/investment properties. 

I don't know any of your personal scenarios, and I am not giving out any rate lock suggestions. I just wanted to bring this to the communities attention. 

Good luck everyone! There still will be plenty of opportunity for good deals! Let's grind and find opportunity!