Stricter Lending Guidelines for Condos – Irvine Real Estate – Irvine Homes for Sale

by Robert Mack on January 16, 2011

in Buyers, Latest News

STELLAR credit and steady income will go a long way in helping borrowers secure a home mortgage, but they may not be enough when it comes to buying or refinancing in certain condominium buildings.

Stricter guidelines that govern which buildings are approved for conventional mortgages — rolled out by three government agencies in stages since December 2008 — are locking out thousands of buildings nationwide. States like Florida and Arizona are especially hard hit; mortgage brokers say that some buildings in the New York area have also been affected.

The guidelines and approvals come from Fannie Mae, the buyer of home mortgages; Freddie Mac, its smaller competitor; and the Federal Housing Administration, which insures loans. The rules were meant to help strengthen their balance sheets as they faced a surge of loan defaults in the condo market.

“If a condo project is not approved, it makes it very difficult to get financing for a first-time purchase or refinancing,” said David Adamo, the chief executive of the Luxury Mortgage Corporation in Stamford, Conn.

The National Association of Realtors estimates that 23,000 condominium projects nationwide are on the verge of losing their F.H.A. approval by spring. Some 2,200 buildings with older approvals lost their status in December. Last month, though, the F.H.A. granted extensions.

via nytimes.com for the complete article

Posted on Irvine Orange County Real Estate Market News

Leave A Reply With Facebook

comments

Powered by Facebook Comments

Irvine Home Search Irvine Home Values

Post by Robert Mack

Robert has written 727 articles.

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: