Revised Lending Guidelines on Condos - will you be able to sell or buy?

Fannie Mae and Freddie Mac have revised condo lending guidelines and the effects are already showing up in transactions.

If you're an HOA Board Member, a Property Manager of condos, a condo homeowner, there are certain things you can do to prepare in advance to sell a unit. If you're a buyer, your lender will require these.

1. Use the Condo Questionnaire from the lender.

2. Obtain a copy of the current year's budget which will reflect its financial health and reserves (15% of the entire buildings' annual HOA dues). This is a new threshold.

3. Provide a Master Insurance Policy

4. Recent Meeting Minutes

5. Any and all litigation history

6. Reserve Study and Financial Statements

https://video.wixstatic.com/video/1791e6_a7c38a8307e3421d9103d71c22deee50/360p/mp4/file.mp4

Be Prepared

There are 2 exceptions to meeting all of the above guidelines:

1. Your building is a PUD (see title report).

2. The building has less than 10 units.