LLPA? Points Requirements?

[Steve Ford]

I'm under contract on my first property (thanks BiggerPockets community). My lender just told me that 2nd home liens are required to pay points. I got the impression it was a Fannie thing, not an individual investor thing, but I haven't probed any deeper with him yet. Wanted to check with the folks here to get educated first. I read something about LLPAs on the forum that I don't understand. Any advice/education would be appreciated. He's saying 7.5% with 3pts or 8.125% with 2pts (30 year fixed) with no Zero or 1-point options. Won't kill the deal, but more out of pocket than I'd anticipated (and a little frustrated he hasn't mentioned this previously).