When a project has more that 10% of all the properties listed, forget about getting a Fannie Mae loan.
This is one of those catch 22 moments, in order to sell current inventory, you can't already have too much to sell.
Here is one of the big struggles we face with buyers, they see great rates out there but if there is 6 condos for sale in a project of 50, you have exceeded the project review standard set up to accept the mortgage in the secondary mortgage market.
You can get a loan from a portfolio lender at a much higher rate, or on an adjustable rate (which we have been telling buyers not to risk).
We have read that investors can borrow money on up to 10 properties, you can get a $8,000 credit if you're a first time buyer. You can request a short sale and walk away from some of the money you currently owe on your home, Or you can walk away from your home completely with little concern of being prosecuted for that default.
But If you have good credit and see the value in a condominium or new home project and there are a double digit number properties for sale there...good luck getting a loan. This road block hasn't changed or been reviewed in many... many years. This policy change is an important one to get this huge boulder moving again.
Once inertia takes over we have a chance to affect a positive move in clearing up stagnant inventory. As the Government writes down bad debt, can the Fannie Mae board look at this issue, many sellers are close to loosing their property and a buyer would buy if underwriting policy changes to allow financing on these sales.
Hello Fannie Mae, it's time to change the project review policy to allow a greater percentage of listings to be for sale and still offer preferred rates, and terms that only you are able to offer to the public.
Who looks at these terms and policies anyway?
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