Wednesday, April 29, 2009

Condo Financing Under Pressure

Condo refinances are proving to be a thorn in the FHA’s -- and owner’s -- sides. A simple FHA refinance is anything but simple for condo owners whose neighbors may be in arrears on their dues.

If 15% of a building’s owners are 30 or more days late on their dues, FHA guidelines will not permit an owner to refinance.

New construction has also been hit hard by the FHA’s tighter regulations. 70% of units (up from a previous 50%) must be presold before Fannie or Freddie will buy the related loans.

Read more about condo financing in today's Los Angeles Times article.