Just wanted to notify everyone of this!
A new development took place in the last 24 hours regarding second homes and investment properties. In an agreement with the US treasury during the final days of Trump’s time in office, both sides worked out a deal where aggregators (investors) are limited in percentage of total loans that can be second homes or investment properties. This goes into effect for loans delivered after April 1. You can read more about the memo below. The old administration had in mind to steer Fannie/Freddie into doing a larger percentage of owner occupied while leaving the investment/second home realm to “private money”.
This is going to impact rates from 3/8ths in RATE or more on second homes/investment properties.
I don't know any of your personal scenarios, and I am not giving out any rate lock suggestions. I just wanted to bring this to the communities attention.
Good luck everyone! There still will be plenty of opportunity for good deals! Let's grind and find opportunity!
just talked to my mortgage broker. and he confirmed this. I'm just starting the Cash-out refinance process on two 4-plex's to harvest 200k in equity, lower my interest rates and restore my VA entitlement to house hack another 4-Plex. this new change in lending may affect my situation negatively.
Sorry to hear that bro! Good luck. A primary VA loan wouldn't be affected by this so you should be good on that front. But, not the best news from the investor point of view!