If you're fascinated with buying an Orlando condo, it is imperative that you know what you're stepping into, and the way the previous year has changed things. The principles and regulations for condominium mortgages have changed quite a bit since 2009…
In April, the 2 government-run mortgage companies, Fannie Mae and Freddie Mac, tightened their guidelines for those trying to own an Orlando condo or any multi-family home. The restrictions make it harder for potential buyers to get financed by way of Fannie Mae and Freddie Mac, which makes a mortgage more expensive.
The April policy requires that the condominium association and operations be evaluated, as well as your credit qualifications. The brand new requirements touch on topics akin to:
" The association's insurance
" Financial statements
" Standing of dues receivable from these living in the condo
" Who owns what units
" What number of units are empty
If the condominium you're looking at would not come back with a superb report, you may have to go to a private mortgage insurer. Sadly, non-public insurers are turning into even pickier; some have give up covering condo mortgages all together. To have the ability to get a mortgage, even with good credit, you could find yourself paying as much as 40% down to get mortgage payments you can afford.
Even if the condo is authorised, nonetheless, you'll still need to give you 25% or try government financing. Fannie Mae and Freddie Mac say it doesn't matter what your credit score is. If you can't pay 25% or more within the down payment, you'll end up with a three-quarter point add-on penalty - $750 for every $100,000 borrowed. What is the penalty for? Not buying a "conventional," single-family home.
What is the moral of the story? If you want to buy an Orlando condo, spend more time researching than you usually might. Search for those that have not less than a 50% occupancy rate. Find out if the occupants pay their dues, and if one particular person owns more than 10% (a big "no deal" for the 2 mortgage corporations). Good condos are on the market and available, but the guidelines make buying a tough recreation to play.
If you're on the lookout for a great condo that qualifies for Fannie Mae/Freddie Mac financing, get the help of an Orlando Realtor.
Author Resource:
Buy Vacation Condos .com offers Orlando, Florida investment properties, vacation homes and vacation condos for sale. Discover Orlando investment property , real estate investments and real estate investing.
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