In addition to reforming condo underwriting guidelines to allow limited project review classification on 2-4 unit condo associations, Fannie Mae has also eased the requirements in other areas as well.
Maximum commercial influence in a condo association was 20% and now it is 25%. This means that a mix-use condo project can have up to 25% of the square footage dedicated to commercial use.
Owners who own more than one unit:
In condo association with 20 units or less, one owner can now own 2 units. In the past, the rule read that one unit owner couldn’t own more than 10% of the units. This meant that in associations with fewer than 20 units, if a single entity owned two of the condos the property was ineligible for conventional financing.
Condo fee delinquency:
Up until now, when examining the association financials no more than 15% of the unit owners could be past due on condo fees or assessments by 30 days. The time frame has been increased to 60 days past due versus 30 days.
New construction pre-sale requirements have been reduced from 70% of the units to 50% of the units.
AND more GREAT News!!!
The high-balance loan limit has gone UP in many counties across the country!