In the past month, there have been some interesting mortgage developments that you might want to know about.
First off, the Federal Housing Finance Agency (FHFA) decided to shake things up a bit by changing the way they calculate loan-level price adjustments (LLPAs). This means that starting from May 1st, 2024, borrowers with higher credit scores might end up paying a bit more, while those with lower credit scores could see a reduction in fees. A bit of a cosmic twist, isn’t it?
In another interesting turn of events, the US 30-year mortgage rate has dropped to 6.83%, the lowest it’s been since June 2023. This could be great news for potential home buyers, as it might make their journey to homeownership a little less bumpy.
And last but not least, Fannie Mae and Freddie Mac have updated their guidelines on rental income from Accessory Dwelling Units (ADUs), allowing lenders to count this income when underwriting a mortgage. So, if you’ve got an ADU, you might be in luck!
So, there you have it, the latest updates on US mortgage guidelines. It’s a rough and tumble lending climate out there, but at least your mortgage journey might have gotten a little bit easier.
