Understanding Fannie Mae and Freddie Mac Second Home Fees
Fannie Mae and Freddie Mac charge upfront fees for second home purchases, ranging from 1.125% to 3.875% of the loan amount. Introduced by the Federal Housing Finance Agency (FHFA) in 2022, these fees depend on the loan-to-value (LTV) ratio, with lower LTV ratios incurring higher fees. Buyers should consider these additional costs when planning their second home investment, as they significantly impact closing expenses and overall affordability.
