New condo mortgage rules could mean delays, denials and higher costs

New underwriting requirements could add extra reviews and paperwork before many condo mortgages are approved.

[Source photo: Roman Babakin/Adobe Stock]

BY Anna-Louise Jackson

Buyers beware: Starting on Monday, new rules from Fannie Mae and Freddie Mac go into effect that could make it trickier to obtain a mortgage for a condo.

The new policies, announced by the two government-sponsored enterprises back in March, could add some complexity to the sales process as the condo association will face new scrutiny as part of the loan approval process. While the goal is to better identify condominium buildings that may pose financial or structural risks to buyers,........

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