If you are planning to put your condo on the market anytime in the next few years, it takes more than just staging to prepare your condo for a future sale. The condo association™s financial stability as measured by amount in reserves has now become an important criteria for loan approval.
Under the new guidelines, your condo must meet the new guidelines set by Fannie Mae/Freddie Mac in order for a potential buyer™s lender to approve it. Under the new guidelines, a condo building must have in reserves an amount that is at least 10% of the annual operating budget. Consult your annual budget or contact your condo treasurer or management company for the amount of the budget.
In addition, due to increased restrictions on conventional financing, more and more buyers are resorting to FHA loans. These loans offer competitive interest rates and allow a buyer to purchase with just 3% down, versus the higher down payments being required today, that are eliminating some buyers. In order to qualify a condo building needs to meet certain requirements. Send an email to mfinegan@kw.com to request an FHA checklist, or call Maggie at 773 502 1673.
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