It is exactly the false notion that CLTâ€™s arenâ€™t common for the Minnesota real estate marketplace that has prevented clean Fannie Mae loans from being more available. Underwriters will make this assumption and turn a loan down for lack of the facts or simply fear of not understanding what theyâ€™re dealing with. The truth is, Community Land Trusts have grown steadily in number and market share:
With affordable housing providers becoming scarcer, CLTâ€™s will likely become a more important player in the Twin Cities.
Obtaining Fannie Mae backed financing on a Community Land Trust has many benefits over the alternatives (market interest rates and terms without pre-payment penalties vs. higher rates and balloons) but their approvals are demanding. In addition to meeting all of the basic qualifying criteria for a Fannie Mae backed loan, an approval on a CLT loan is subject to addition steps and guidelines:
Dealing with these kinds of additional requirements demand specialized experience in your Realtor, loan officer, loan processor, underwriter, appraiser and title company. These people are accessible and consequently, not being able to get a quality mortgage on a Community Land Trust should not be an obstacle or dissuade anyone from taking advantage of this valuable form of home ownership.
Charles Dailey -Â iLoan -Â NMLS ID# 79048 â€“ CA DOC, MN DOC & WI DFI â€“ 612.234.7283
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