With last year’s historically low interest rates many people began researching buying a second home as an investment property to collect rental income. Others were looking for a vacation home away from home to have space during COVID. In January, the Federal Housing Finance Agency announced upcoming increases for “High Balance Loans and Second Home Loans to Take Effect April 1, 2022.”
We recently spoke with Jason Hinkle, a Mortgage Loan Officer with OnPoint Community Credit Union, to get the scoop on what this could look like if you’re looking to finance a second home:
“With a property intended to be an investment property, they can at least use anticipated future income to help with income qualifications. In a standard 20% down scenario, a second home would now have a rate around 5.125% or 5.25%, based on current rate pricing. There is a slight benefit in rate pricing on a 2nd home (compared to an investment) if they put at least 30% down.”
We’re always happy to answer your Qs!