Fannie Mae, Freddie Mac increased pricing on Non Owner Occupied Properties

Effective today, September 25th, the following pricing increases take effect:

New Adjustments:

• Investor Occupancy, <= 75% LTV: add 1.75% to Discount
• Investor Occupancy, >75% and <=80% LTV : add 3.00% to Discount
• Investor Occupancy, >80% and <=85% LTV: add 3.75% to Discount

Previous Adjustments:

• Investor Occupancy, <= 75% LTV: add 1.50% to Discount
• Investor Occupancy, >75% and <=80% LTV : add 2.00% to Discount
• Investor Occupancy, >80% and <=85% LTV: add 2.50% to Discount

What this equals is approx. 1/8th of a point increase in rate on the under 75% loan to value,

approx. 3/8th of a point rate increase for the 75-80% loan to value, and finally,

approx. .5% higher rate on the 80-85% loan to value.

this makes it very important that your investor clients purchase wisely, and have good rental comps. Their payment is going to be higher because of this.