Buyer Agent reports Plymouth Buyers Face New Loan Challenges

It is spring of 2023 and there are a lot of house buyers who will be impacted by a extra set of Loan Level Pricing Adjustments (LLPA) that are hitting the mortgage industry right now. Here is some background: One of the reasons this country has such a great ownership rate is that we generally have truly low interest rates on house loans. A big reason for that is the standardization of loans by some giant pseudo-government entities, primarily FannieMae and FreddieMac. About 80% of house loans meet standard guidelines, and it allows for simple interchange of loans by big institutional investors. Loans that conform to these standards are referred to as "conforming loans". Again, this is approximately 80% of house loans. As you probably know, not everyone gets the similar rate when they purchase a home. That is because of the LLPA. These adjustments compensate for variations in each loan, the size of the loan, the type of house, what the house is used for, the credit scor