Just a quick email to update you on the nature of non-warrantable condominium financing. As you can see by the title of this email, the situation is getting worse, with new condo projects hitting the “ineligible” list every week. Projects that are under-insured lead the way, while HOA litigation, deferred maintenance and special assessments continue to appear as well. Needless to say this is affecting the sale of many condominium projects. According to a 2022 Community Association Institute survey of condominium and housing cooperative volunteers and professional managers:
- 72% of respondents say they have been impacted by the updated Fannie Mae and Freddie Mac lending guidelines.
- 22–28% of respondents indicate they experienced a lender denial due to issues related to the questionnaire, not concerns pertaining to building safety.
- 30–42% of respondents indicate they have experienced significant delays in lender approval due to challenges pertaining to the new lender questionnaires.
Coast 2 Coast is California’s #1 Direct Lender for Fannie Mae ineligible condos. To see if your condo project is on the list or not, just fill out the section to the right and someone will contact you.