Federal Fees Increase for Second, Vacation Homes

Starting April 1, 2022, the Federal Housing Finance Agency (FHFA) will be introducing new fee increases for second and vacation home loans, as well as high balance loans. 

Until this announcement, second and vacation properties had similar pricing and guidelines as primary residences. Now, after April 1, 2022, second properties will pay higher fees and have to meet stricter guidelines, similar to investment properties.

These fee increases are a result of the FHFA’s continuing efforts to help first-time homebuyers, especially those of low- or -middle income, achieve their goals of home ownership.

According to Acting Director Sandra L. Thompson, the “… action represents another step FHFA is taking to strengthen the Enterprises’ safety and soundness and to ensure access to credit for first-time home buyers and low- and moderate-income borrowers.”

Second home loans will still adhere to the same factors as primary home loans, so exact fees will still depend on things like your location, income and credit score. 

For example, first-time homebuyers in high-cost areas with incomes at or below 100% of their area’s median income will not be subject to high-balance loan fee increases. Programs like HomeReady, Home Possible, HFA Preferred and HFA Advantage will also be exempt from these fee increases. 

If you’re wondering how this announcement may affect the search for a home, our experienced loan officers are here to help! Contact us to learn more about our loan products.