Looks Like I Picked the Wrong Week to…. Sell a Condo

02. Jun, 2009 3 Comments

Remember that movie Airplane? It was made in 1980 so I’m totally dating myself but I think it’s hysterical.

And one of the funniest recurring bits in the movie is when the air traffic controller played by Lloyd Bridges keeps having to deal with all these problems and makes cracks like … “Looks like I picked the wrong week to… quit drinking, smoking, sniffing glue… you get the point.

Well, today condo developers are in the same boat as Lloyd.

Fannie and Freddie decided to change the requirements for financing condos and let’s just say that it’s even tougher to buy a condo now than it is to be in charge of an Airplane where Mrs. Cleaver is speaking jive.

One of the new rules is that a buyer can’t qualify for a conventional loan unless the development is 70% presold – that’s up from 51%.

Geez.

Here’s a question for you Fannie and Freddie – do you actually want to make mortgage loans?


Financing, Random Observations
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3 Responses to “Looks Like I Picked the Wrong Week to…. Sell a Condo”

  1. Jim Reply 16. Jun, 2009 at 8:18 pm

    Hello Susan,

    I shared your info with one of my mortgage guys and this was his response:

    If a condo is FHA approved a buyer could use that program with 3.5% down and if they are a first time buyer the $8,000 stimulus can be borrowed against for closing cost and escrows or discount points to buy the rate down.

    Veterans can also benefit from a 0 down loan.

    I am an expert in both of these areas with 17 years of experience.

    Susan, is he correct or not?

    Thank you,

    Jim

  2. Susan Lassiter-Lyons Reply 16. Jun, 2009 at 10:14 pm

    Well, der. An FHA/VA loan is an agency loan not a conventional loan. :-)

  3. Susan Lassiter-Lyons Reply 16. Jun, 2009 at 10:31 pm

    Since I write about investor financing I never am speaking about VA/FHA financing.