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New rules make condo buying harder
Colorado Springs Condos — just got harder to buy
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Fannie Mae has instituted new rules when it comes to giving loans for condos. If the building is brand new, they want to make sure there 
are enough owners to pay for maintenance and preserve the value of the property. These new rules are designed to protect the buyers and lenders but they could also make it harder for the owners to sell them.
Fannie Mae will only guarantee mortgages in new or newly converted condos if 70% of the units are sold or under contract. That 70% could be hard to reach if buyers cannot get financing. In older units, Fannie Mae will not guarantee a mortgage if more than 15% of the other owners are delinquent on the HOA fees.
Fannie Mae wants to reduce the risk for lenders and protect buyers from condo fee increases or special assessments that could cause hardships to the new owners.
Nationwide, there is over a one year supply on condo sales and these new rules could mean that condo sales will decrease even more.
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Kathy (719-287-1049) KTorline@msn.com
