The Letter X – Issue #48
Mortgage brokers looking to finance loans for investment properties and vacation homes will have limited options in the near future. Starting June 1st, Fannie and Freddie will not purchase more than 7% of these loans from a single entity over a rolling 12-month period. On top of that limitation, agency lenders are tightening their underwriting standards so fewer non-owner and second home borrowers will likely not even qualify for GSE loans.
These new regulations will directly impact brokers’ mortgage business and impact their ability to capitalize on a growing area of the mortgage market. According to Redfin, demand for second and vacation homes has risen 84% year over year – more than double the demand for a primary home. For brokers who don’t want to miss out on this growth opportunity, non-QM is here to help.