Lenders tighten rules for financing condos | www.oceancitytoday.net | Ocean City Today: More on the Fannie Mae requirements:
"New requirements they will be looking for are:
z Fidelity insurance, something many buildings do not have. That protects the association in the event a member steals any of its money. Buildings with less than 20 units are exempt from this requirement.
z A budget line item that accounts for the insurance deductible, to show the money is available in case it has to be spent.
z A reserve fund that contains 10 percent of the total budget.
z Especially troubling for some condominiums is a rule that classifies certain ones as 'condo-hotels' and therefore ineligible for financing through the two federal mortgage entities."
--------------------
They interviewed a realtor who said any building with a rental office inside is considered a "condo-hotel."
No comments:
Post a Comment