New Condo Mortgage Rules Could Mean Delays, Denials, and Higher Costs

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.