Condos are a great solution for many homebuyers! Condos often provide a lower cost of ownership or a desired change in lifestyle for many homebuyers. Condos are becoming a more popular option at the same time it is becoming more difficult to finance a Condo purchase. The COVID-19 Pandemic is creating some long term challenges for Condo Buyers. The CARES Act provided the opportunity for Borrowers to enter Mortgage Payment Forbearance. Millions of Homeowners entered Mortgage Payment Forbearance and stopped making their mortgage payment. Many Condo owners also stopped making the Condo Fee or Home Ownership Association Fee (HOA) payments. This drove a significant spike in delinquent Condo/HOA Fees. This is a long term issue for Condo buyers. Fannie Mae and Freddie Mac have a maximum delinquent rate of 15% for Condo/HOA Fees! No matter how well the Borrower is qualified if the Condo/HOA Fees delinquency rate exceeds 15% the Condo is not available for Fannie Mae or Freddie Mac Financing. There are Non-QM Option (Non-qualified mortgage) but most have the 15% Condo/HOA Fees Delinquency Cap! The other issue is in response to the Champlain Towers collapse Fannie Mae and Freddie Mac have changed their requirements regarding deferred maintenance, reserves, inspections, special assessments among other concerns. The Borrower may be extremely well qualified to buy the Condo, but the project may not qualify! Before you write a Condo contract take the extra step to ensure the Condo project will qualify!
I'm Lisa Longest with Realty Navigator. I am a full time Realtor® GRI® and PSA® in Anne Arundel and Queen Anne . I am here for all your real estate needs. If you are looking to buy, sell or question me about the market in your area, feel free to contact me. My email is LisaLongest.RE@Gmail.com and cell is 443-786-4200.
The above information provided by:Spencer BangertDivisional Sales Manager Mid-Atlantic RegionNMLS #1202142Fidelity Direct Mortgage, LLC