The changes are part of a Biden administration rule intended to provide equitable access to homeownership, but first-time homebuyers with high credit scores would pay more under this new rule.
The rule changes are part of the Federal Housing Finance Agency's efforts to provide "equitable and sustainable access to homeownership" and to strengthen capital at Freddie Mac and Fannie Mae.administration's stated purpose behind making these changes is to help make it easier for borrowers who have historically been disadvantaged and have had a hard time accessing credit," Realtor.com chief economist Danielle Hale told ABC News.
"Because of these changes, the advantage of having a higher credit score, or making a larger down payment, is not as big as it used to be," Hale said. According to the FHFA, the new rules will redistribute funds to reduce the interest rate paid by less qualified buyers.It depends on who you ask. Critics say the new rules penalize people with good credit, using them to subsidize loans of riskier borrowers. "It's another subsidy to try to buy votes," former Home Depot CEO Bob Nardelli told ABC News.
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