The L.A. Times recently published a piece discussing how Fannie Mae and Freddie Mac were raising fees, and toughening credit rules depending on FICO credit scores. So start watching for “delivery fees” if you are putting down less than 30%.
That’s not a typo!
- below 700, add 1.5%
- 700-720, add .75%
- 721-739, add .25%
Meaning, if you haveÂ a $350,000 loanÂ then you will be charged a delivery fee ofÂ .75%,Â or more simplyÂ pay $2,625 more.
This add-on probably won’t stop anyone from buying, and with rates so low with few discount points if any, why make a big deal of it? Because, when someone buys a home, they pump money right back into the economy buying everything from furniture to paint. And if they have $2,625 less to pump back because of the “delivery fee” then the economy will enjoy less of the economic stimulus of the process.
The two companies are promoting this fee to loan officers as adding extra protection. Oh, that is protection for themselves.