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New lending guidelines as President Biden aims to make home ownership more affordable.

There are three big changes to residential home loans that you need to know about.

The most celebrated is the declaration that Biden made last week in the aftermath of the Marshall Fire in Colorado.

Through an FHA loan called 203H, buyers affected by the recent fire or a declared disaster area, may qualify for a no money down loan, pending a credit score above 600.
From “Individuals are eligible for this program if their homes are located in an area that was designated by the President as a disaster area and if their homes were destroyed or damaged to such an extent that reconstruction or replacement is necessary. Insured mortgages may be used to finance the purchase or reconstruction of a one-family home that will be the principal residence of the homeowner.”
“No down payment is required. The borrower is eligible for 100 percent financing. Closing costs and prepaid expenses must be paid by the borrower in cash or paid through premium pricing or by the seller, subject to a 6 percent limitation on seller concessions.”

The Federal Housing Finance Authority will increase the fee for second-home and high-balance loans. 

Coming April 1, 2022, there will be additional loan charges imposed on second home purchases, increasing between 1.125% and 3.875%.
For high balance loans, the fees will increase between 0.25% and 0.75% on loans between $647,200 and $684,250. This is dependent on one of the borrowers earning an income equal to or greater than the area’s median income.
From “These targeted pricing changes will allow the Enterprises to better achieve their mission of facilitating equitable and sustainable access to homeownership, while improving their regulatory capital position over time,” said Acting Director Sandra L. Thompson. “Today’s 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.”

Disclaimer: I am a realtor and not a licensed mortgage lender. Information is reliable, yet please confirm this information with a qualified lending professional.

If you need a lender recommendation, I’d be happy to connect you!


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