Fannie Mae & Freddie Mac are euphumisms that refer to 2 Federal gov't, mortgage loan guarantee programs. These programs have qualifying guidelines that banks need to meet to get that back-up guarantee on their loan.
Short term, that MAY reduce the financing options that are available to you. Long term, that MAY also reduce the options that are available to your potential buyers, hence making it more difficult to sell. There may be ample programs that ARE available to you and in the future to your buyers, but anytime you limit financing options, you do tighten th e market somewhat.
Ask the agent WHY they do not meet the program guidelines? If you do not get a satisfactory answer, keep asking! Ask to talk to the agent's manager or broker, or find a reputable mortgage banker whom you can consult.
Good luck

Mon Mar 31 2008, 23:34

Gene, I assume that by Villa you mean condo, or condo like with a HOA? Basically the association does not have Fannie/Freddie approval to lend government backed institutional loans in the complex because of a specific reason, it may be that they are currently in litigation or something of the like. This can present problems in the future, especially going to refi later down the road. You want to ask your Realtor why they are not approved and then go over the HOA material as soon as you get it (required by the contract).

Check the name of the complex on the HUD website: https://entp.hud.gov/idapp/html/condlook.cfm

Mon Mar 31 2008, 19:00