FHFA Suspends Restrictions on 2nd home and Investment Properties

Mortgage and Lending with HomeBridge Financial Services (NJ) NMLS 248937



On January 14, 2021, the Federal Housing Finance Agency (i.e., Fannie and Freddie’s regulator) announced several new restrictions on loans that could be purchased by Fannie and Freddie.  These restrictions severely limited the GSE’s purchases of 2nd home and investment property loans causing SIGNIFICANT rate increases especially on 2nd (vacation) homes.  September 15, 2021 FHFA announced that they were removing these restrictions effective immediately. 

So we are back to pre pandemic guidelines for both vacation and investment properties.  This comes just 2 months after the removal of the Adverse Market charge for refinances in July which leads me to believe that things are getting back to normal in the secondary market.  Effectively a sign that mortgage volumes, while still good, are down to manageable levels from the previous year.

So anyone looking to purchase a Vacation home now will likely see  a 1/2% improvement (or more) in RATE for conventional loans

Call me for all your residential lending needs!


Robert Rauf 
Mortgage Loan Originator NMLS# 248937
or my blog: http://activerain.com/blogs/rrauf 
Office: (732)908-4868  Cell (732)740-0175 


Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 9 Grand Ave, Building 2 Suite A Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.Homebridge.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721, 

Comments (2)

George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Robert Rauf that was a wise move on there part, because those restrictions and pricing caused a major decrease in second home and investment property sales.

Sep 16, 2021 01:58 PM
Robert Rauf

There have been a few things that FHFA have done in the past few years that have had us all wondering what they were thinking!

Sep 17, 2021 08:15 AM
Kristin Johnston - REALTOR®
RE/MAX Realty Center 262-567-2455 - Waukesha, WI
Giving Back With Each Home Sold!

Great information.   Thanks for sharing and have a wonderful day!

Nov 12, 2021 07:07 AM