Biden Punishes homebuyers with good credit

According to a story by The Washington Times, homebuyers with strong credit will soon have to pay higher mortgage rates and fees to assist persons with poorer credit scores as part of the Federal Housing Finance Agency’s quest for affordable housing.

According to the article, a new federal rule implemented by the Biden administration will require home buyers with credit scores of 680 or better to pay around $40 per month more than those with less favorable credit when taking out a mortgage of $400,000 than those with less favorable credit.

“If you have a high credit score, and 680 is a good credit score, you have to pay more. And we’re talking about real money. This could be $100 a month more, depending on the size of your loan. So it makes no sense,” Mithch Roschelle Real estate expert and Madison Ventures+ managing director unpacked the “madness” on “Varney & Co.” on Thursday.said. “And by the way, this isn’t about first-time homebuyers. There’s nothing in this rule that says it applies to first-time homebuyers. It applies to anybody borrowing money that’s insured by FHA. It’s madness.”

Under the new rules, consumers with lower credit ratings and less money for a down payment would qualify for better mortgage rates than they otherwise would have. According to experts in the mortgage business who spoke to The New York Post is an “Ugly surprise” for homeowners who “worked for years to build their credit.

The new regulation will apply to mortgages from private banks all around the country starting on May 1. According to The Washington Times, the loan-level price adjustments (LLPAs), which are supported by the federal government, will be set by Fannie Mae and Freddie Mac.

It will be difficult to explain to someone who says, “I worked my whole life for high credit and I’ve put a lot of money down and you’re telling me that’s a negative now?” according to one mortgage loan originator, who told The New York Post.

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