The Federal Housing Finance Agency (FHFA) announced in January its plans to increase the upfront fees Fannie Mae and Freddie Mac charge. These fees apply to any second home mortgage loans sold to the agencies.  

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With the potential to have a big impact on real estate investors, this new fee adds another hurdle to non-owner occupied property deals. And with single-family investment homes selling in record numbers — especially in hot investment markets like Miami, Phoenix, and Austin — the news isn’t sitting well with everyone…

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A blow to borrowers

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Chuck Fowke, chairman of the National Association of Home Builders commented about the rate hike... “With the nation in the midst of a housing affordability crisis and many more workers electing to telework, this is exactly the wrong time for federal regulators to be raising fees on homeownership and second homes.

If FHFA is truly interested in promoting housing affordability, the agency would not be taxing home buyers to pad the capital positions for Fannie Mae and Freddie Mac.”

The good news? PeerStreet and our national network of private lenders are here to help.

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PeerStreet provides alternative funding options for originators of private loans

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With FHFA trying to bolster homeownership (possibly at the experience of investor owners), now is a great time for your borrowers to explore private lending options and alternative funding sources. 

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‍PeerStreet offers several options, including our Residential for Rent Loan Program

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Great for non-owner occupied properties, our Residential for Rent Loan program can help borrowers purchase, refinance, or take cash out on properties. It offers major benefits, including:

1. No qualifying income requirement. If the rent covers the loan payment, including taxes and insurance, then that’s all that’s required to qualify the borrower/guarantor.
2. And as long as the borrower has qualifying credit, down payment, and some liquidity reserves, then there is little else needed for approval. It's a much less invasive process than many traditional lending options. 

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To learn more about our Residential for Rent Loan program, check out our one sheeter. 

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Or, if you’re ready to partner with PeerStreet, get started today.

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Smart originators know that partnering with PeerStreet, means partnering with growth. Become a partner today. 

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If you’re a borrower who is looking for a loan, contact us and we’ll put you in touch with an originator that specializes in your region and project type.