Another example of -

*  one hand ($8000 stimulus) not knowing what the other hand (tigher lending)is doing or

* the government "giveith" and the government "taketh away" but it is certain that

>>>>> the $8000 is in the news to get support while the harsher standard are buried so no one sees it.

THE FOLLOWING IS A SUMMARY OF THE FANNIE MAE CHANGES THAT IMACT ANY CONDO APPLICATIONS TAKEN ON OR AFTER MARCH 1, 2009.

   *70% Presale to owner occupied or second home clients is now required for new or newly converted condo projects.

*Delinquent HOA fees on all types of projects cannot have more than 15% of the units 30 days past due on their fees  

*Fidelity Insurance required for attached condo projects (over 20 units).

*"Walls-in" hazard insurance (HO-6) required on all condos including 2-4 units  unless this coverage is included in the master policy.  This coverage must include replacement coverage to include owner improvements made to the interior of the unit since purchase. 

This announcement also knocks out the following:

*Mixed use projects where more than 20% of the project is non-residential.

*Projects where more than 10% of the total number of units is owned by a single entity; individual, investor group, partnership, or corporation.

*New projects where the seller/developer offers consessions in excess of Fannie Mae's guidelines.  It appears that any interest rate subsidies that relate to the project may be included in this restriction even if the cost of such a buy-down does not show up on the individual HUD-1.