Lenders Are Underwriting Condos and Coops More Strictly Than Ever Before!
In June 2021, the twelve-story, oceanfront condominium, Champlain Towers, in Miami Florida collapsed, killing ninety-eight people. Since that tragic day, Fannie Mae, Freddie Mac, and FHA have rewritten their national underwriting guidelines increasing their fact-finding, inquiries, and being more discerning when reviewing these properties.
Lenders are now required to delve much deeper into the finances of all condo and coop developments, verifying their budgets, cash reserves, maintenance history, and more!
Buyers and their attorneys must now inquire more deeply into the finances, maintenance, and repair histories of any communities where they wish to purchase, to ensure these communities can withstand lenders’ scrutiny and afford future upkeep.
For a more detailed explanation, read, “Big Changes in the Availability of Condo and Coop Financing!”
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, The Daily News, Anton Press, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.