Fannie Mae and Freddie Mac New Guidelines
Fannie Mae and Freddie Mac make it harder for home buyers and real estate investors with mortgages on Condos. It's hard to really understand why these giants corporations are tightening their regulations while the government is trying to fix the economy. If you're a condo home buyer or a condo home seller you should read this article because it might change the way your realtor presents your property.
These days most real estate purchases are done by real estate investors. This is a great time for all investors to put the money they've saved in the past years in real estate, but purchasing condos is a little different animal I guess unless if you will purchase the property cash. Condos are a little different than single family residents by all means, also by the way they've getting financed by banks or the government.
Fannie Mae and Freddie Mac have said in march that they will no longer guarantee mortgages on condos in buildings where fewer than 70 percent of the units have been sold. They've created controversy, this may drive the condos market down because they are one of the main investors in America to land money on real estate. I'm thinking how the first 70% of condos will sale if home buyers and/or real estate investors can't get a loan to purchase them.
While I'm thinking about Fannie Mae and Freddie Mac's new regulations and thinking about the real estate market and the economy crisis in the world I discovered another new reason why Fannie Mae and Freddie Mac will not land money to new home owners: "delinquency in home owner association dues. I really don't know why it's so important that while a home buyer with a great credit comes to purchase a condo in a building that other homeowners weren't responsible enough to pay the Home owner association dues will not qualify for a mortgage.
Fannie Mae and Freddie Mac said they will not guarantee mortgages to condo buyers if 15% of the homeowners in the building are delinquent on the homeowner association dues.
That's what I wanted to talk about today just to give you readers some general information about the market.
Good Luck.