Fannie Mae's new condo loan guidelines cause fear, frustration ...

I thought that I had financing for a condo purchase that was supposed to close next week. Instead, I got a cold email from the bank that my loan was being rejected because the condo project didn't meet the 15% delinquent fees threshold. The lender had already granted an exception to the 70% owner-occupancy ratio (the building is at 66%, but 3 units are vacant, and it's only a 47 unit building). My mortgage broker and realtor were caught completely unaware about this new requirement. No lender would pick up the loan even when I was willing to put down 20%. That building has 3 vacant units, and I don't know how they're going to be able to fill them. Unfortunately, I had already removed my loan contingency, so I'm pretty sure I'll lose my earnest money deposit. It's so frustrating--I thought I would be moving into my very first home next week.

Oh, I have the same situation as you. My loan suppose to be closed by yesterday. However, the lander called me and told me that my loan had been rejected by the underwriter, according to the Fannie Mea guide line. The reason they reject my loan is there is 1% hoa delinquency over the guide line 15%. I don't know is there any where I can borrow money from. Very frustrated.

Similar story to above - a re-fi attempt on my condo, cost me $500 in non refundable application fee, complex is FHA approved but not fannie mae compliant. How can one attempt to refinance without taking a $500 roll of the dice? Lenders should be up-front about requirements.

M--her F---ers!

Discouraged wrote:

I thought that I had financing for a condo purchase that was supposed to close next week. Instead, I got a cold email from the bank that my loan was being rejected because the condo project didn't meet the 15% delinquent fees threshold. The lender had already granted an exception to the 70% owner-occupancy ratio (the building is at 66%, but 3 units are vacant, and it's only a 47 unit building). My mortgage broker and realtor were caught completely unaware about this new requirement. No lender would pick up the loan even when I was willing to put down 20%. That building has 3 vacant units, and I don't know how they're going to be able to fill them. Unfortunately, I had already removed my loan contingency, so I'm pretty sure I'll lose my earnest money deposit. It's so frustrating--I thought I would be moving into my very first home next week.

I had the same thing happen to me! I also removed my loan contingency and unfortunately have to either pay cash or lose my $13K deposit. This is so unfair when the lender was not up front with all their requirements!!! This has to be changed!!

Im so scared that this may happen to me also. Im just waiting for the bank to inform me if the condo project is approved or not. I basically have an approved credit and all but the last step was to have the condo project go thru an approval!!! I recently found out about this Fanniemae guidelines and I checked the deliquency in the HOA its way over 15%!!! I just wish they give an exception!! It will be so frustrating if it gets denied! not to mention losing almost $600 for the application!

We have experience on the other end. We are selling a condo and the buyer has ran into criteria rejections twice.. Until finally he is gonna pony up 15% and the loan still might not go through. Its frusteration for both parties because we will lose out on the homes we both wanna buy.... and it is all because the developer has yet to turn over the rights to the condo owners. Someone sits in a room and yay or nay these condo questionaires not even knowing what the look like.. Its not fair that we bailed out these banks and now they wont lend to qualified buyers...

I am in escrow on a beach condo and have 25% down perfect credit bank approval but woooops the condo project has 44% owner occupancy. I was approved at 5% with zero points. I have found a loan at 6% with three point plus $1500. Its robbery. It will take a cash buyer to buy these condos and while there are some out there there are not that many. I forsee the condo market in California going in the toilet by about 60%

again wrote:

Similar story to above - a re-fi attempt on my condo, cost me $500 in non refundable application fee, complex is FHA approved but not fannie mae compliant. How can one attempt to refinance without taking a $500 roll of the dice? Lenders should be up-front about requirements.

As a lender for 25 years the guideline changes are coming in fast . We all do our best. The best way to protect yourself is having a home owners form filled out by the management co to see if it qualifies . It will give you all the details about delinquency , o oc ratio and insurance . Any lender you are dealing with should do this first before taking your money

I was having a lot of trouble getting financing on the condo upstairs that I love. I finally found someone who could get me a loan, but it was an FHA loan and the lady I was buying from told me FHA wouldn't do it, if they would it would take a long time. I actually got an approval, but then, because my boyfriend owns the place we live and I was buying the place upstairs, the bank said there was an occupancy issue. They didn't believe we were going to live there. I guess I can understand why they would think that, but I really wanted to move in the new one, it was much nicer and I was picking it up for about 100K less than my boyfriend owes on the mortgage here. So if you are defiantly going to be living there I am sure Wes could help. I don't have his number off the top of my head, but I do have his email:

wjamison@topdot.com

He is really cool and helpful. It anyone finds a place that will finance me and believe that I am moving in, please let me know.