Fannie and Freddie Mac have decided to implement new rules that will increase their fees to close loans for most borrowers.  I will insert a Washington Post article below that goes into more detail about the actual costs.  What this means for most buyers is that they will be better off using an FHA or VA loan to purchase a property...and the FHA limits have been increased in the last several years.  For more information or to talk to a QUALIFIED lender...please contact me at shanetwhite@remax.net or 512.515.5263.  We would love to set you up with someone who can give you a clear picture of the current lending arena and help to get you the best deal possible when purchasing a home...

FANNIE, FREDDIE INCREASING FEES

WASHINGTON (Washington Post) – Effective April 1, Fannie Mae and Freddie Mac will increase the "delivery" fees they charge lenders based on FICO scores, down payment amounts and other loan characteristics.

Under the new guidelines, even applicants who assumed that their FICO credit scores would get them favorable rates will be charged more unless they can come up with down payments of 30 percent or more.

For example, a buyer with a 699 FICO score who brings a down payment of about 25 percent to the table will be hit with a 1.5 percent delivery fee at closing under the new guidelines. A buyer with a FICO score between 700 and 720 will pay an extra three-quarters of a point. Someone with a 739 FICO — once considered a platinum guarantee of the best rates available — will get dinged with a quarter-point add-on.

Condominium buyers who cannot come up with a 25 percent down payment will be hit with a three-quarter point add-on penalty, no matter how high their credit score.