Several of my clients are in the process of looking for a condo to purchase. One issue buyers need to consider for a condo complex is if the complex is warrantable, that is, buyers can obtain loans that are eligible to be sold to Fannie Mae or Feddie Mac. Loans not saleable to FNMA (non-conforming) are considered riskier, typically with higher loan rates and larger down payment requirements.
There are several criteria to determine if a condo is warrantable. For example, high investor ownership will make the complex non-warrantable. Here’s the Fannie Mae criteria as of December 2008.
Some condo projects have already been approved by FNMA as warrantable. Check here for a list of approved condos in Arizona.
Your lender may require a questionnaire to be filled out by the condo management to determine if the warrantable criteria is satisfied.
Related link: Finding FHA approved condos
Copyright © 2009 Rod Rebello
www.TempeAgentNews.com
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