Some loan officers I know have given us the heads up that effective June 1 there are many changes coming in mortgages and needed down payments via Fannie Mae New National Down Payment and Loan Policy Guidelines. The new guidelines as I understand it are meant to supersede earlier guidelines written in December 2007 that were not working out. As a whole, real estate prices are declining, and buyers were unable and unwilling to put up more money to purchase homes in this current market. The new changes are meant to get things moving. What is not mentioned in the proposed changes...are the changes that will apply to condos. I would love to hear input from other loan officers and mortgage folks about how this will apply to condo units and their financing as it relates to these changes. There are several areas I would like to hear about:
- Loan limits
- The amount of down payment that will be needed to purchase.
- The rates that will be charge for condos.
- The availability of condo conversion units financing.
- Condo unit financing / complex vacancy rates / percentage of rented units.
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