Many Second Homes May Need to Be Financed as A Rental Home

Effective with loan applications on May 1st Fannie and Freddie have new more restrictive requirements for loans on Second Homes as follows—
Property must be a 1-unit property, no 2-4-plexes anymore.
The borrower MUST HAVE EXCLUSIVE CONTROL over the property.
The property can’t be rented out at all.
The property can’t be subject to any agreements that give a management firm control over the occupancy of the property. Here in the mountains many condos and even single-family homes belong in a rental pool which allows the management firm or HOA to rent out a vacant property if the owner is not using it. If this is allowed going forward then the property must be financed as an investment property at a much higher cost with more money down. This is also very true in Arizona and many states near the oceans.
There will also now be a loan price adjuster for second homes beginning at 85% loan to value. This fee is 0.25% of the loan amount. I expect this fee will increase.
I won’t be surprised if Fannie and Freddie increase the cost of investment property loans too.

Currently 21% of personal income is government benefits according to David Rosenberg.