Yes, rates may be low, but if you’re in the market for a second-home mortgage, you may need to put in some extra work to land your financing.
According to CNBC, lenders has been institutionalizing lower caps on how many second-home mortgages they’ll pick up this year, causing increased competition.
Following rules set by the Trump Administration, Fannie Mae and Freddie Mac have imposed a seven percent cap on the share of second-home mortgages they would buy, in an effort to limit their own risk.
Some non-bank lenders, however, are looking to capitalize off the changes, and have been taking on more second-home mortgages. Other work arounds noted by CNBC include buyers being home to different types of mortgages, like a 10 year ARM, fixed-rate for 10 years.
Check out the full report from CNBC here.