Fannie Mae approved towhomes & mortgage approval (private mortgage insurance, loan, real estate)

[brandy76]

I just got pre qaulified for a towhome in Clifton, NJ. The Wells Fargo person who helped me said to make sure the towhome development is approved by Fannie Mae, if it isn't they won't be able to give me a loan.

Is this true of all lenders or just specific to Wells Fargo. I checked Fannie Mae and the developments aren't on their approved list.

[VictorBurek]

I hope you recognize the level of service that this lender is providing. Shouldnt they check into whether the townhome development is approved?

It would be true for most lenders. Some lenders portfolio the loans meaning they keep the loan from start to finish while most lenders like Wells Fargo will not keep your loan. They will sell immediately to fannie to get the loan off their books.

[brandy76]

At the time I got my pre-qual, I didn't have a specific develoopment picked out. The Wells Fargo agent said that's something the real estate agent would tell me.

I'm probably going to get a mortgage through a mortgage broker instead of Wells Fargo since a friend found someone she has dealt with.

But going forward is it going to be difficult getting a loan for a non-Fannie Mae townhome?

[JohnVeenstra]

By "townhome" I assume you are referring to a condominium---usually, not always, a townhome is as tyle of condominium.
Right now the Fannie Mae and Freddie Mac and FHA organizations are changing their condominium approval guidelines.
A condominium project does not have to be Fannie Mae or anybody approved to get a loan although credit scores and size of down payment and debt ratios come into play.
Also, big difference between new condo projects and established condo projects.
Most of New Jersey is in a "declining market area" as determined by private mortgage insurance companies and means creit scores and size of down payment and debt ratios have a major detemination on mortgage approval.