Today we started our "lender lunch" with a Chinese banquet, celebrating the Year of the Ox. Sue, our in-office lender from Princeton Properties, had lots of new information for us. We'll learn even more about this market at the Short Sale Seminar scheduled on the 10th of February.
Some new info from today's talk was: Fannie Mae is charging a half percent "risk premium" for loans on condos with less than a 25% down payment.
The maximum financing available for conforming loans(under $417,000)is 95% on single family homes, and 90% on condos and townhomes.
Lenders are watching for "red flags" on condo sales...15% or more delinquencies in homeowners' dues, and any litigation against the association. They want to see all the association documents and the certification,(cert)especially, at the time the property goes into contract.
Investors may be limited to loans under the conforming limit of $417,000, and should expect to pay at least one percent more in interest than buyers who will live in the property. They should also expect to put 25% to 30% down.
Only a handful of lenders are making true jumbo loans. These require at least a 25% down payment.
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