- What is a non-warrantable condo?
- A non-warrantable is any condo that doesn’t meet all of Fannie Mae or Freddie Mac’s qualified lending requirements.
- Whether it’s a houseboat or 16% of unit owners are delinquent on their association dues — the specific requirement that’s missing doesn’t matter.
Besides, Which of the following is considered an ineligible property type for a Fannie Mae purchased loan? Projects with Property that is not Real Estate Fannie Mae acquires mortgage loans secured by real estate. Houseboats, boat slips, cabanas, timeshares, and other forms of property that are not real estate are not eligible for delivery to Fannie Mae.
How do you tell if a condo is Fannie Mae approved?
Quickly and easily determine if a condo project meets Fannie Mae’s requirements. Fannie Mae’s Condo Project ManagerTM (CPMTM) is a free, web-based tool that enables lenders to quickly and easily certify a condominium project (or a legal phase of a project). The project must be eligible under the Full Review requirements.
Why are condos higher risk? Condos pose a higher risk to lenders because the complex is governed by a homeowners association, which oversees daily maintenance, performs major repairs and maintains the budget for the entire complex.
Hence, What is the owner occupancy requirement for condos Fannie Mae? Fannie Mae requires that 50 percent of the units be occupied by owners, not investors. This gives stability to the community and assures other owners that their community won’t be renter-dominated.
Is paying off a 2nd mortgage considered cash-out?
*A new mortgage used to pay off a second mortgage that is less than 12 months old and was not used in purchasing the property. The last is your case. Because your second mortgage was not used to acquire your home, refinancing it would be considered a cash-out transaction.
Does Fannie Mae require appraisals?
Fannie Mae requires the appraiser to describe the condition and quality of the property on its appraisal report forms. The appraiser must report the condition and quality of the property in factual, specific terms.
How do you get Fannie Mae approved?
How to Apply for a Fannie Mae-Backed Mortgage. Homebuyers must also meet minimum credit requirements to be eligible for Fannie Mae-backed mortgages. For a single-family home that is a primary residence, a FICO score of at least 620 for fixed rate loans and 640 for adjustable rate mortgages (ARMs) is required.
What is needed for a full condo review?
The criteria for a full review is that the condominium needs to have 51% or more of its units be an owner occupant. This means it needs to be a warrantable condominium unit. Mortgage lenders do not want to see any more than 15% of the condo homeowners association dues delinquent for more than 30 days.
What makes a building non Warrantable?
A non-warrantable is any condo that doesn’t meet all of Fannie Mae or Freddie Mac’s qualified lending requirements. Whether it’s a houseboat or 16% of unit owners are delinquent on their association dues — the specific requirement that’s missing doesn’t matter.
What makes a loan non conforming?
A non-conforming loan is simply any mortgage that doesn’t conform to the requirements set forth by Fannie Mae and Freddie Mac. Non-conforming loans commonly include jumbo loans (those above Fannie Mae and Freddie Mac limits) and government-backed loans like VA loans, FHA loans or USDA loans.
What properties are ineligible according to Fannie Mae guidelines?
Ineligible Properties
- vacant land or land development properties;
- properties that are not readily accessible by roads that meet local standards;
- agricultural properties, such as farms or ranches;
- units in condo or co-op hotels (see B4-2.1-03, Ineligible Projects, for additional information;
Do nonconforming loans have higher interest rates?
Nonconforming loan cons More expensive: Since nonconforming loans pose a greater risk, the lender will compensate with more stringent and more expensive requirements, including higher interest rates and down payment and reserve requirements.
What is difference between conforming and nonconforming loan?
Conforming Loan vs. Nonconforming Loan. Conforming loans are backed by Fannie Mae and Freddie Mac, and can’t exceed FHFA loan limits (typically $647,200). Nonconforming loans can be bigger but may cost more.
Is a non-conforming loan bad?
Nonconforming mortgages are not bad loans in the sense that they are risky or overly complex. Financial institutions dislike them because they do not conform to GSE guidelines and, as a result, are harder to sell. For this reason, banks will usually command a higher interest rate on a nonconforming loan.
