FHLMC and FNMA do not lend on vacant lots. Their response was relevant to the question. The answer to their question was "No, it won't impact your loan directly."

MookieBlaylock said:

---

SpencAg said:

---

Only affects your loan if you are looking to do a long-term fixed-rate, government backed product

---

So 95% of primary home buyers

---

Other than the down payment qualifications - and given where rates are currently, I try to steer my customers to do adjustable-rates. Rates are lower, fees are lower, and when rates go down they're going to refinance anyway.

SeanG512 said:

---

Am I reading this chart right?

If I put down 30% or more, I am safe? No extra fee?

But if I put 29% down or less….then I will have a fee?

---

No. it's at least 40% down. 39.99% or less and fees start.

The top row is the LTV, not the down payment.

Jay@AgsReward.com said:

---

It would effect any deal that was locked in early March or later. The May 1st is the date the loan is delivered to the GSE's.

Here is good article about the whole thing: https://www.mortgagenewsdaily.com/markets/mortgage-rates-04212023

---

looks like they have rescinded this program due to protests from...about everyone

does that mean the folks in the short window that closed after this was announced (but before it was delayed/rescinded) are just up **** creek?

Quote:

---

Did you hear that sound? That's the entire mortgage industry shouting, "hip, hip hooray!" The Federal Housing Finance Agency (FHFA) on Wednesday announced that it would rescind a controversial loan-level pricing adjustment (LLPA) for conventional borrowers with debt-to-income (DTI) levels at or above 40%.

The FHFA, which regulates Fannie Mae and Freddie Mac, had previously delayed implementation of the DTI LLPA from May 1, 2023 to August 1, 2023 following a chorus of upset from mortgage industry stakeholders, including the influential Mortgage Bankers Association (MBA).

---

https://www.housingwire.com/articles/fhfa-rescinds-controversial-dti-llpa/

I don't think the cost was ever implemented.

maybe not. I was a little confused on that as people were saying it was already "priced in".

Some lenders could have priced in but that would make their offers less competitive. Since it was suspended at the start I doubt many did.

different issue. The one that was rescinded was an additional cost for 40% or over for debt to income. This was originally announced at the same time as the larger LLPA changes that got so much attention, but this one was delayed until August implementation, and now scrapped altogether. So, this change was never priced in.

ahhhhhhhhhh,,,,that makes more sense