Fannie Mae Changes Condo Rules
One last crucial piece of information: You’ll want to ensure it is warrantable when buying. Unwarranted residential buildings are much more challenging to sell. When adevelopment is non-warrantable, it does not meet conventional financing guidelines. Fannie Mae and Freddi Mac will not be able ...
“Every board member has a fiduciary duty to the association,” says Peyton. “You really don’t violate it unless you reach into the realm of criminal level conduct. Most other board decisions and actions will be covered by the Business Judgment Rule—if you are stealing from the association...
For starters, your condo is part of a building that may have many similar units (similar layouts and finishes). This means buyers already have multiple choices with the exact same location, amenities, facilities, layouts and perhaps even finishes and views. If inventory happens to be high when...
Until yesterday, New York co-op and condo attorneys were concerned that when a "flip tax" had been imposed, Fannie Mae would not purchase a mortgage in that building. Not a good result for the New York real estate market. Initially, I was under the impression that the proposed rule only...
including Freddie Mac and Fannie Mae, require that a condo or association are putting away a certain percentage of their revenue every year to ensure a healthy reserve fund. “There are pretty strict guidelines and in order to provide financing (for the purchase of new units), they have to ...
Where there has not been a clear path to financing alternatives for co-ops (i.e. they do not meet FannieMae guidelines), co-op boards and managing agents should be even more vigilant in pursuing and disseminating information about their alternative financing options. ...
However, even when using a conventional loan, most lenders still follow FHA, Fannie Mae, and Freddie Mac guidelines when underwriting a condo loan. Those guidelines are much more strict than those for a traditional home purchase because in addition to the borrower they also require the condo bui...
“Each building or community is different and unique,” says Dougherty. “There are components of carbon reduction that are done in conjunction with utilities and other energy providers. There’s also the question of bringing more power capacity to individual apartments to accommodate a shift toward...
In the hybrid part-owner/part-tenant world of co-op living, there exists an interesting and unique financial instrument: theunderlying permanent mortgage. Part of the overall financing structure for any co-op, the underlying mortgage (UPM) was conceived as a way to reduce the overall price of...