Be Prepared for Changes in the Purchase of ... - Tampa Real Estate

One of the biggest selling points about condominiums is the low-maintenance lifestyle that still provides the benefit of neighbors and social activities. From the typical one-bedroom of years ago, condos in Tampa and other areas have expanded to feature full-sized family rooms and kitchens, a laundry room, 3 bedrooms and 2 baths.

Another reason for purchasing a condo is the price and easier qualifying for a mortgage. When home prices rose so high in the last decade, a number of people took advantage of the ability to qualify for lower-priced condos that offered most of the benefits of a single-family home. At the same time, the hours normally dedicated to yard work and outside maintenance were eliminated, freeing up time for other activities. Now that the economy is settling down, homeowners are considering refinancing to get a lower interest rate and do some upgrades, while others are thinking of purchasing a condo.

Fannie Mae recently announced changes effective October 20, 2012 that affect applicants in search of refinancing and condo buyers. At this time, extra paperwork to determine loan qualification is required when the down payment falls below10 percent. On October 20, the down payment criteria changes to less than 20 percent.

Additional documents required include a copy of master insurance policy and completion of a two-page condo questionnaire about the HOA finance goals. At the same time, Fannie Mae is cinching up the criteria that underwriters use to approve condo loans. As jobs were phased out, unemployed entrepreneurs went into business for themselves.

Now self-employed borrowers will need to provide tax returns for the past two years, rather than one, so underwriters can determine an average income. Those whose business has grown and is going strong may suffer from this analysis. The additional paperwork and financial analysis seem designed to deny, rather than approve, loan requests for condos.

For more information and available condos for sale in South Tampa visit www.tampa2enjoy.com.

Source: http://www.tampa2enjoy.com/blog/2012/10/06/be-prepared-for-changes-in-the-purchase-of-condominiums/

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