Buying a Condo? New Lending Rules Could Make It Harder to Get a Mortgage

New Condo Lending Rules Could Slow Mortgage Approvals, Raise Borrowing Hurdles

NEW YORK (AP) — Buying a condominium with a mortgage may become more difficult under new lending standards that took effect this week for loans backed by Fannie Mae and Freddie Mac. CNBC reports the the new policies require lenders to conduct more comprehensive reviews of many condominium associations, including their finances, reserve funding, insurance […]

Buying a condo? New lending rules could make it harder to get a mortgage

New rules increasing lenders’ scrutiny on some condo purchases could cause more delays and denials for buyers, experts warn.

New condo mortgage rules could mean delays, denials, and higher costs

The underwriting requirements could add extra reviews and paperwork before many condominium loans are approved.

Condo Buyers Face Tightened Mortgage Reviews Under New Rules

Condominium buyers may face higher costs and documentation demands under new lending rules from Fannie Mae and Freddie Mac. For loan applications dated on or after Aug. 3, Fannie Mae will eliminate its Limited Review process, while Freddie Mac will retire its comparable Streamlined Review option. Those abbreviated reviews had allowed certain mortgages in established condominium projects to qualify with less extensive scrutiny. Loans that previou…

New Condo Lending Rules Add Scrutiny to Building Finances - The MortgagePoint

New condo-lending policies implemented by Fannie Mae and Freddie Mac indicate that certain purchases may now face increased scrutiny from lenders, making the application process longer and potentially resulting in “a lot of disqualifying applications,” according to Max Slyusarchuk, CEO of AD Mortgage.