The Biden administration has announced a rule to punish new homebuyers with good credit starting May 1st. Homebuyers with good credit, defined as anything above 680, will pay an additional fee on top of their mortgage. New homebuyers with credit scores lower than 680 will not be subject to the new fee. The fee will go toward subsidizing homebuyers with lower credit scores in an effort to open up the possibilities of home ownership to them. The fee will be about $40 per month on an FHA loan for a home valued at $400,000. Higher-priced homes and/or higher down payments will cause the fee to increase.
SOURCES:
Real estate expert shreds Biden rule punishing homebuyers with good credit: ‘It’s madness’ | Fox Business
TUCKER CARLSON: The Biden admin’s new rule will punish people with high credit scores | Fox News
Is Biden’s Credit Score Screw Job On Mortgage Pricing Even Legal? – Mish Talk – Global Economic Trend Analysis
Biden Raises Costs for Homebuyers With Good Credit to Help Risky Borrowers
Mortgage rates to hike for homebuyers with good credit
Biden Administration To Punish Those With Good Credit Scores With Higher Mortgage Payments To Subsidize Others – OutKick
Upside Down Mortgage Policy – WSJ
