Fannie, Freddie toughening rules for condo buyers to qualify for loans
Business First of Columbus - by Kevin Kemper
A difficult market for condominium sales will become more challenging July 1, and condo developers and sellers aren’t happy about it.
They say Freddie Mac and Fannie Mae are making rule changes that will slow any recovery of the housing market, even if the changes are designed to protect condo purchasers.
“It makes it far more difficult to get people qualified when they adjust the rules and regulations midstream,” said Tré Giller, president of Westerville condo developer Village Communities.
Starting July 1, McLean, Va.-based Freddie Mac will only buy or guarantee mortgages for condos in new developments that are at least 70 percent presold, a change from its 51 percent requirement. It is a move that follows a March 1 rule change by Washington, D.C.-based Fannie Mae that does the same.
614-220-5460 | kkemper@bizjournals.com
