The Federal Housing Finance Agency’s push for affordable housing will increase payments for good-credit homebuyers to subsidize high-risk mortgages, starting in May 1st.
A new federal rule enforced by the Biden administration will make it so that people looking to buy a home with a credit score of 680 or higher will have to pay about $40 per month more than people with worse credit when taking out a home loan of $400,000, the report said.
The new rule, which goes into effect on May 1, will affect mortgages from private banks across the nation. According to The Washington Times, Fannie Mae and Freddie Mac, federally-backed home mortgage companies, will establish the loan-level price adjustments (LLPAs).
In November, nationwide, households need six-figure incomes to comfortably afford the typical home for sale, according to a report by Redfin.
Last month, the nation’s home buyers needed to make about $107,000 annually, up from about $74,000 a year earlier, to afford a median-priced home, according to Redfin. That’s an increase of nearly 46%.
In the Philadelphia metropolitan area, the annual income needed to afford a home at the median sales price of $260,000 was about $70,000 last month, up from about $50,600 in October 2021. That’s a 38% increase.
Read more: https://unusualwhales.com/news/housing-affordability-in-the-us-is-near-all-time-lows-per-goldman-sachs
