La Quinta and Coachella Valley Condominium Sales are having even more problems. It seems that some condominium devleopments are having a great deal of trouble getting financing for loans. The following is information I received today from a very aggressive, local Lender, regarding La Quinta and Coachella Valley Condominium Sales.
Will more Buyers choose to WALK AWAY from their condo offers????
Several rule changes are making it harder and harder to get loan approved in Condo developments, especially here in the Coachella Valley. Fannie and Freddie have already tightened up their lending requirements for Condos, and The FHA has new regulations that are going to have a huge impact here in the valley.
From now on whenever I receive a lead on a buyer who is buying in a condo development the first thing I do is make sure that it is lendable by having our underwriter review the CC&R's and Condo Cert when necessary. Don't take this the wrong way and think that we can not lend where others can, because we bank and broker to multiple sources the opposite is true. Our local knowledge is a huge advantage!
If I were a realtor representing a buyer on a condo in the desert and the buyer was getting a loan I would negotiate to have loan contingency extend to the end of the escrow period. This is a great way to protect your buyers from losing their deposit if it turns out the development cannot be financed.
Don't hide from the potential pitfalls of condo purchases! The first step on FHA loans is to check this website to see if the Condo development is eligible https://entp.hud.gov/idapp/html/condlook.cfm
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