Why Condo Financing Is Being Denied | New Rules 2022

We’re hearing this story more and more lately…
You’re selling or buying a condominium unit and everything is going smoothly, until the last minute, when the financing is denied unexpectedly. What is the cause of this trend?
You may recall the tragedy in Florida last year when Champlain Towers collapsed due to structural neglect. In response to this and to hopefully keep something similar from happening again, Fannie Mae and Freddy Mac updated their condo guidelines. Condo associations, boards and management companies will now have to attest that there is no significant deferred maintenance on their properties.
Overall, this is an important safety measure. However, it could impact the value of condo properties out there, and the eligibility of borrowers. The smartest thing for condo associations to do will be to get out in front of it as best they can.
#condofinancing #realestate #deferredmaintenance
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