Attention New Condo Buyers—Good luck!

Freddie Mac, the <span class=”blsp-spelling-corrected” id=”SPELLING_ERROR_0″>behemoth</span> Co-God of the mortgage world along with Fannie Mae has instituted new condominium guides that WILL put a halt to condo purchasing.<br /><br />Freddie has been <span class=”blsp-spelling-corrected” id=”SPELLING_ERROR_1″>instrumental</span> in making condo buying as easy as buying a home. Now, because of who knows what exactly, buying a new <span class=”blsp-spelling-corrected” id=”SPELLING_ERROR_2″>construction</span> or conversion condo will be near impossible.<br /><br />What has changed? Here you go!<br /><br />1. At least 51 percent of the units has to be conveyed or are under contract to <span class=”blsp-spelling-corrected” id=”SPELLING_ERROR_3″>purchasers</span> other than the <span class=”blsp-spelling-corrected” id=”SPELLING_ERROR_4″>developer</span> who will occupy their units as primary or 2<span class=”blsp-spelling-error” id=”SPELLING_ERROR_5″>nd</span> homes.<br /><br />That means that you can’t go to closing until 51% are under contract with people who will actually live there!<br /><br />2. Subject legal phase and any prior legal phase in <span class=”blsp-spelling-error” id=”SPELLING_ERROR_6″>these</span> units have been offered for sale are substantially compete.<br /><br />This applies to projects where the units and common elements are not fully completed or <span class=”blsp-spelling-corrected” id=”SPELLING_ERROR_7″>subject</span> to <span class=”blsp-spelling-error” id=”SPELLING_ERROR_8″>addtional</span> phasing OR less than 90% <span class=”blsp-spelling-error” id=”SPELLING_ERROR_9″>or</span> the total number of units have been closed OR the developer has not turned over control to the homeowners.<br /><br />But, if you live in an established <span class=”blsp-spelling-corrected” id=”SPELLING_ERROR_10″>until</span> that has been turned over and is complete, it is easier than new, but still needs a full approval by the lender if over 90% <span class=”blsp-spelling-error” id=”SPELLING_ERROR_11″>LTV</span> for primary or 75% <span class=”blsp-spelling-error” id=”SPELLING_ERROR_12″>LTV</span> for 2<span class=”blsp-spelling-error” id=”SPELLING_ERROR_13″>nd</span> homes (if you get an LP Accept- If not the owner <span class=”blsp-spelling-error” id=”SPELLING_ERROR_14″>occ</span> drops to 80%). For investors, basically forget Freddie. They don’t want you.<br /><br />Also, Freddie is now saying they will impose a fee on you to refinance or <span class=”blsp-spelling-corrected” id=”SPELLING_ERROR_15″>purchase</span> in high loan to value situations if your credit score is below 740. Yes, I said SEVEN <span class=”blsp-spelling-corrected” id=”SPELLING_ERROR_16″>FOURTY</span>! That is <span class=”blsp-spelling-corrected” id=”SPELLING_ERROR_17″>obscene</span>, absurd and downright wrong.<br /><br />Because you (Freddie) did not provide better <span class=”blsp-spelling-corrected” id=”SPELLING_ERROR_18″>safeguards</span> to your bondholders, the person who has a 739 score should suffer? It does not make sense. 680 makes a little sense. That seems to be a good dividing line.<br /><br />Please write your Congressperson and complain. It is just not right. <br /><br /><span class=”blsp-spelling-corrected” id=”SPELLING_ERROR_19″>Ridiculous</span> tighter lending rules will not get the areas of the country righted. It will only make things worse.<br /><br />So many people then are looking for FHA to bail us out. Great…..two years from now we (the taxpayers) will be screaming because we will have to get federal money to make good on the high loan to value, very low credit score, marginal buyers. This at the same time the people at 739 must pay higher rates. It’s just plain dumb.

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