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I'm currently in the process of taking the plunge of real estate ownership. I have an offer in for a newer condo (2009) and I believe it will be going to contract soon. One thing I'm worried about is how I will provide financing (30 year conventional) for the purchase given the Freddie Mac / Fannie Mae requirements that most lenders have. I'm intending to put 20-25% down and I have a 787 FICO score, cash reserves and 6.5 years of employment with the same company with a comfortable salary. While I think my personal finances wont be a problem, I'm worried that most condominiums in my area are not Fannie/Freddie approved.
The condo that I'm interested in is the last one owned by the developer. However, the developer created two buildings and it would appear one is rented and the other is full ownership. I think this might disqualify the eligibility requirements that are imposed for conforming loans.
With all that said, the real question is how do financially qualified buyers get financing for a condo that don't meet the stipulations of Fannie / Freddie? I'm to understand that approx 90% of lenders follow these guidelines?
I'm currently in the process of taking the plunge of real estate ownership. I have an offer in for a newer condo (2009) and I believe it will be going to contract soon. One thing I'm worried about is how I will provide financing (30 year conventional) for the purchase given the Freddie Mac / Fannie Mae requirements that most lenders have. I'm intending to put 20-25% down and I have a 787 FICO score, cash reserves and 6.5 years of employment with the same company with a comfortable salary. While I think my personal finances wont be a problem, I'm worried that most condominiums in my area are not Fannie/Freddie approved.
The condo that I'm interested in is the last one owned by the developer. However, the developer created two buildings and it would appear one is rented and the other is full ownership. I think this might disqualify the eligibility requirements that are imposed for conforming loans.
With all that said, the real question is how do financially qualified buyers get financing for a condo that don't meet the stipulations of Fannie / Freddie? I'm to understand that approx 90% of lenders follow these guidelines?
Thanks in advance for any advice.
Regards,
Patrick
I think a lot of the financing that is available in this situation is no financing, all cash. My guess is the only people who would be willing to finance would be those who plan on holding onto the note, maybe a credit union, private investor or small community bank?
I would be vary wary buying a condo in most areas in this country.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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You even have to worry about how many people are overdue with their association dues, and how many are vacant to get the loan. It's easier
to secure financing on a house these days.
You might also look for a bank owned condo owned by Fannie Mae that qualifies for HomePath financing. They do their own financing and it doesn't have some of the FHA rules.
Also talk to your mortgage broker about non-FHA loans if you have 20% to put down. Some conventional lenders have less strict qualifications (but ask which!). Also even with 20% down on a property, FHA loans will charge PMI.
Good luck - and don't forget to look at houses that have similar costs (maybe higher price but lower condo/HOA fees so monthly payment is the same)
You might also look for a bank owned condo owned by Fannie Mae that qualifies for HomePath financing. They do their own financing and it doesn't have some of the FHA rules.
Also talk to your mortgage broker about non-FHA loans if you have 20% to put down. Some conventional lenders have less strict qualifications (but ask which!). Also even with 20% down on a property, FHA loans will charge PMI.
Good luck - and don't forget to look at houses that have similar costs (maybe higher price but lower condo/HOA fees so monthly payment is the same)
How do you know if the condo is owned by Fannie Mae?
How do you know if the condo is owned by Fannie Mae?
Can you access county appraiser in your area?
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