Jeff’s Carlsbad Blog for First Time Home Buyers


New Fee Coming for Condo Purchase Loans

Posted in Financial,Mortgage info,What do I Buy? by Jeff Dowler on February 12, 2009
Tags: , ,

Fannie Mae is implementing a new fee for folks who are buying condos.

The reason is that condos have been the riskiest buys in recent years with all the speculation, investors, and now the issues associated with short sales, foreclosures and REOs, the majority of which are condos. Condos statistically are a greater default risk, and so Fannie Mae is adding a new fee effective April 2, 2009.

Buyers will continue to have the option to use FHA loans (provided that the condo complex is FHA approved – many are not) if they qualify. Be aware that the interest rates may be different and FHA requires a 3.5% downpayment.

The fee announced by Fannie Mae will be 3/4 of a point (as a % of the loan amount) which can be fairly substantial. Something to keep in mind if you are considering a condo purchase.

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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your home search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.

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