JSOnline.com: Tighter standards make getting condo loans more difficult
Many of my condominium purchasers are finding it more challenging finding a mortgage lender that is willing to work with them. It has become an even greater challenge for financing new condominium developments. It’s not because the banks don’t want to lend. It’s because Fannie May and Freddie Mac, government-backed mortgage finance companies, have tightened their policies for purchasing loans from banks that are used to purchase condominium units. Banks typically pass these additional costs on to the purchaser by requiring larger down payments and charging higher interest rates.It’s not enough to have a good credit score, a well-paying job, and a savings account with a balance large enough to cover 20% of the purchase price for a down payment.
My Thoughts
There is good news for many condominium purchasers in today’s market. All is not lost. There are two local banks that are still funding condominium units especially new condominium developments. AnchorBank and Johnson Bank are assisting buyers in today’s market to purchase even brand-new condominium developments (e.g. Cityside Plaza, The Point, The Edge, Landmark On The Lake, etc.). Johnson Bank is holding their loans versus selling them to Fannie Mae and Freddie Mac. By choosing to hold their loans, Johnson Bank doesn’t need to meet the strict lending requirements of Fannie Mae and Freddie Mac.
I have recently joined the sales staff at Cityside Plaza where we have an established relationship with Johnson Bank. During the past week the developer of Cityside Plaza, Magnet Group of Chicago, closed on the sale of two brand-new condominium units. In addition, during the past two weeks, we have secured purchase contracts for four brand-new condominium units. According to Johnson Bank, condominium purchasers are able to secure a loan for as little as 10% down for Cityside Plaza. Therefore, if you need a second or third opinion, I would recommend that you contact Johnson Bank and AnchorBank.
Tom Daykin, writer for The Milwaukee Journal Sentinel, describes the challenges that many condominium purchasers face in the current condo market. Click here to read more about the challenges that today’s condominium purchasers are facing in this dynamic housing and mortgage markets>>>
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Labels: Economy, Finance, Real Estate
posted by David Ray @ 7:06 PM
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