Biden Administration to hike payments for good-credit homebuyers to subsidize high-risk mortgages

The federal rule will go into effect May 1.
(Source: Tayler Davis/KSLA News 12)
Published: Apr. 21, 2023 at 3:31 PM CDT
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FARGO, N.D. (Valley News Live) - Homebuyers with good credit scores will soon encounter a costly surprise.

A Biden Administration rule will force them to pay more for their mortgages to subsidize loans to higher-risk borrowers, according to the Washington Post.

Experts believe that borrowers with a credit score of about 680 will pay around $40 more per month on a $400,000 mortgage under rules from the Federal Housing Finance Agency.

This will go into effect May 1, as part of the administration’s push for affordable housing.