The budget is one of the most common reasons a condo project is denied under the Full Review program. Ask for a copy of the insurances:. Flood if applicable.
Fidelity if the project has greater than 20 units. Law and Ordinance.
The insurances are also typically relatively easy to obtain at no cost. A quick review of the insurance basics by a Foundation Mortgage Banker will let you know if there are any obvious deficiencies that would prevent eligibility for Limited or Full Review approval and require you consider other non-traditional non-warrantable options.
Ask for copies of any pending litigation the association is involved in. Order A Condo Questionnaire. If the above items appear to meet guidelines, make sure a condo questionnaire is ordered at the beginning of the loan process.
The Condo Questionnaire will contain more detailed information impacting project approval. Obtaining this information at the start of the process will help you determine whether there are any problematic items early in the process. Most Lenders will not submit the condo approval information to their condo review department until the complete package is put together.
In San Francisco, only 17 complexes have been approved. The new approval process is part of a rule change that will take effect Oct.
The goal is to increase homeownership among low-income, minority and first-time buyers, and seniors wanting to downsize. Under the new rules, they might be able to. There still will be a limited review of the project to make sure it has adequate reserves and meets owner-occupancy and other requirements.
Those are the same requirements FHA imposes on entire complexes today. It will make more affordable units available to more people.
Fannie Mae requires that 50 percent of the units be occupied by owners, not investors. This gives stability to the community and assures other owners that their community won't be renter-dominated. It's incumbent on each community association to monitor who's purchasing units and what the intention is for occupying them. Fannie Mae looks at the list of owners to rule out that no more than 10 percent of the units belong to investors.
It was generally the investors who walked away from their condominium mortgages, which exacerbated the downturn in the condominium market. Fannie Mae looks for stability through the owner-occupiers of a condominium community. Fannie Mae passed one of the most stringent new regulations in This regulation requires that 70 percent of the units in a newly constructed building be pre-sold in order for Fannie Mae to consider lending on the final 30 percent.
Prior to , the baseline was 51 percent. An English degree from the University of Maryland and extensive travels and relocations to other countries have added to her decorating insight. Skip to main content. Credit Score The minimum credit score required for a Fannie Mae HomePath mortgage is , and you must have a down payment of 3 percent of the purchase price.