tag:blogger.com,1999:blog-17920045746297807892011-07-07T17:57:09.275-07:00Bart Gillis, Realtorhttp://www.blogger.com/profile/12063911654594184414noreply@blogger.comBlogger11100tag:blogger.com,1999:blog-1792004574629780789.post-84747972461257289772009-11-24T16:17:00.000-08:002009-11-24T17:14:47.041-08:00With the recent tightening of credit with respect to real estate lending, condominium financing has become more difficult in recent months. I don't know why it is, but, generally, when real estate markets soften, condominium prices tend soften just a little bit more than those of their single family home cousins. Granted, this is a generalization, and there will be multiple exceptions to this "rule". Please let me hear about them! Banks and mortgage companies are having to abide by new FHA &amp; FNMA guidelines for condominium financing, and there are several reasons why a condo MAY be ineligible for FHA or conventional (FNMA/Freddie Mac) financing. Some of the most common issues are listed below:<br /><br /><br /><br />-There is a lawsuit pending against the condominium association<br /><br />-There is a right of first refuasal retained by the association (FHA only)<br /><br />-The development is new and control hasn't been turned over to the condo association by the developer yet.<br /><br />-The condominium association that the condo is a part of is not on the FHA approved list (FHA only)<br /><br /><br /><br />Of course, the financing landscape is changing day by day, and some obstacles, ie, the lawsuit on the association issue for one, can sometimes be overcome. Also, if a particular condo association is not FHA-approved (and this is common), it can be difficult to impossible to get an FHA loan closed on that condo. However, there is a "spot-approval" process whereby a loan officer may apply for a abridged review &amp; approval" without going through the normal time-consuming channels for a traditional approval. Unfortunately, this spot approval process is on the way out and will no longer be available after January 30, 2010. <br /><br />In determining which condo to buy (and there are some great deals out there right now) and what loan products are available to you, it is a good idea to first speak to a lender who is knowledgeable about condos. One professional I have called numerous times for help with condo financing questions is Sheila Borne of Avenue Mortgage in New Orleans, LA. Her cell # is programmed into my phone, and I call her anytime a question pops up regarding condo financing! Her contact information is below:<br /><br /><br /><br />Sheila Borne<br />Avenue Mortgage<br />322 Lafayette Street<br />New Orleans, LA 70130<br />(504) 722-9179 Cell<br />(504) 525-4663 Ofc<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/1792004574629780789-8474797246125728977?l=bartgillis.blogspot.com' alt='' /></div>Bart Gillis, Realtorhttp://www.blogger.com/profile/12063911654594184414noreply@blogger.com0