LL‑2026‑03………….The reason the trouble condo market with a 14-year high inventory levels is going to get worse. This new lender rule takes effect in a week for mortgages via Fannie Mae/Freddie Mac (most of the mortgage market). Prior to new rules taking effect, if you put 20% down, the lender would review you for a mortgage. Now they will do the review on the mortgage applicant, and for any condo building with 10 units or more, will also review the health of the complex itself. This means looking at the reserves, insurance coverage, any litigation against the HOA, etc… Based on my experience in Florida, that means a lot of condos are not going to get a great light for a conventional mortgage. They will have to pay 1% to 2% higher mortgage rates outside this previously easier financing avenue. I wonder how many condo owners, let alone many real estate agents, know of these changes yet.
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