New Fannie Mae Underwriting Guidelines For Condominium Developments
Posted by Ryan McCabe at 2/7/2010 12:20 AM 
Categories: Condominium Association,Federal Regulations,Property Owners Association,Common-Interest Community Association,SC HOA Law,SC Community Association Law
Categories: Condominium Association,Federal Regulations,Property Owners Association,Common-Interest Community Association,SC HOA Law,SC Community Association Law
Effective March 1, 2009, Fannie Mae adopted new underwriting guidelines which will make financing more difficult to obtain for purchasing condominiums. Fannie Mae may refuse to accept mortgages in condominium buildings where 15% or more of the owners are delinquent in their assessments or where any one owner owns more than 10% of the condominium units.
The new guidelines also permit Fannie Mae to exclude mortgages in existing condominium developments where more than 49% of the condominium units are being leased or rented. Fannie Mae has recently began requiring that 70% of the units be sold to non-investors before it will accept a mortgage. These underwriting guidelines will make it more difficult for condominium owners to sell their units.
This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.
The new guidelines also permit Fannie Mae to exclude mortgages in existing condominium developments where more than 49% of the condominium units are being leased or rented. Fannie Mae has recently began requiring that 70% of the units be sold to non-investors before it will accept a mortgage. These underwriting guidelines will make it more difficult for condominium owners to sell their units.
This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.
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