Doug Francis | Real Estate and Homes for sale in Vienna, McLean and Oakton, Virginia | Virginia Home Blog | MLS listings search, advice, tips, humor » delivery fee http://www.dougfrancis.com Doug's real estate blog in Vienna and McLean, Fairfax and Arlington with a little humor too. Easy MLS Search too. Thu, 29 Jul 2010 18:50:40 +0000 en hourly 1 http://wordpress.org/?v=3.0 Fannie and Freddie loans are more expensive April 1 http://www.dougfrancis.com/2009/03/fannie-and-freddie-loans-are-more-expensive-april-1st/ http://www.dougfrancis.com/2009/03/fannie-and-freddie-loans-are-more-expensive-april-1st/#comments Thu, 12 Mar 2009 03:10:23 +0000 Doug Francis http://dougfrancishomes.com/?p=54 Fannie MaeThe 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 have a $350,000 loan then you will be charged a delivery fee of .75%, or more simply 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.

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