This is a YouTube video titled "New Rules Open up Opportunities for the Average HomeBuyer!" containing a monologue by Derek McGowan recorded in April 2023. Derek explains recent regulatory changes affecting second homes and investment properties, highlighting how these changes benefit average families by reducing investor competition in the housing market.
The last few years, the average family's kind of had a tough time finding a home because of low inventory. But it's important to mention that there's a couple rule changes that have actually kind of worked in their favor. One is on second homes. It always used to be up until a year or so ago that second homes had the same pricing, the same interest rates as a primary residence. So it really incentivized that for investors, they can get a low rate, low down payment. Fannie Mae kind of got out in front of that and now they price second homes the same way they do investment properties. So no more benefit. It's kind of pulled back on the second home market. And the other rule is investment properties. So many investors would come in with a hard money loan, buy up the property and also take money to fix it up. And then they turn around six months later and do a cash out refinance, pay off that high interest rate hard money loan and take the lower cash out normal Fannie Mae mortgage From that point forward. Fannie Mae has now extended that, that requirement, the seasoning period from six months to 12 months. That throws a big kink in the whole game plan for investors. They don't want to hold that high interest rate hard money loan for 12 months. So it's actually put some investors back on the sidelines. This isn't a perfect thing, but it does open up more room for the average family to go find houses. Because the second home properties and the investment properties, those crowds are getting a little bit more out of the mix. Opening it up for you.
