March 23rd, 2009 9:03 PM by AJ Gentry
On March 1 Fannie Mae added lending restrictions that make it more difficult for certain condo developers to sell their units. The government backed mortgage company stopped guaranteeing mortgages in condo buildings that haven't sold 51% of their units or to buildings where 15% of current owners are deliquent on association fees.
Our prediction is this is an interim policy to get the country through the subprime lending mess, but for right now buyers best options is to stick to tried and true condo developments or ones that are FHA approved or can be spot FHA approved. Read more about Fannie's tightening in the WSJ article. To learn which condo developments are or are not FHA approved, email me.