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Condo Buying Gets Tougher Due to Mortgage Changes

Mortgage lenders are now required to conduct a more comprehensive review of condo associations' finances and building conditions before approving a mortgage. This change could affect up to 40% of condo purchases and make it harder for buyers to get approved.

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The essential points

  1. 01Fannie Mae and Freddie Mac are introducing new mortgage review standards for condo purchases.
  2. 02Lenders must now assess condo associations' finances, reserve funds, and building conditions.
  3. 03This change could affect up to 40% of condo purchases and make the mortgage approval process longer and more complicated.
  4. 04Buyers may need to provide more documentation or pay a higher down payment to get approved.
The full brief

Mortgage lenders are now required to conduct a more comprehensive review of condo associations' finances and building conditions before approving a mortgage. This change could affect up to 40% of condo purchases and make it harder for buyers to get approved.