Whitmore Lake Buyer Agent Concerned About New Loan Changes

It is spring of 2023 and there are a lot of home buyers who will be impacted by a extra set of residential Loan Level Pricing Adjustments (LLPA) that are hitting the mortgage business right now. Here is some background: One of the reasons this country has such a great ownership rate is that we generally have really low interest rates for home loans. A huge reason for that is the standardization of loans by some giant pseudo-government entities, primarily FannieMae and FreddieMac. About 80% of home loans meet standard guidelines, and it allows for simple exchange of loans by huge institutional investors. Loans that conform to these standards are referred to as "conforming loans". Again, this is just about 80% of home loans. As you probably know, not everyone gets the same rate when they buy a home. That is because of the LLPA. These adjustments compensate for variations in each loan, the size of the loan, the type of home, what the property is used for, the credit scor