Financing a Condo? Recent Guideline Changes Could Make a Big Difference

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Posted To: MND NewsWire

Fannie Mae recently made some fairly big changes to the condo underwriting process. While it may not affect everyone in the market for a condo, it will make all the difference for others. MND community member Ted Rood provided this excellent overview: If you’ve ever financed a condo, you’re likely familiar with the term “condo reviews”. These reviews include analysis of condo complexes’ financials and insurance, breakdowns on units’ ownership and residency, the percentage of owners in arrears on Home Owners’ Association (HOA) dues, any pending legal actions, and more. Lenders must obtain them on every condo loan, in one of two different variations: “limited” and “full” reviews. If complexes don’t meet the requirements, buyers in that HOA can’t get financing. Far more complexes fail full reviews…(read more)

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