Hi Dana

Interesting question.. we have quite a few buyers and sellers in this situation. In todays condo market buyers are very limited in their financing options:

Basically they can do one of the following:

1. Buy Cash
2. 20% down with a 650plus credit score ( this number will vary depending on the lender)
3. 10% down with a 720 plus ( this number will vary depending on the lender)
4. 3.5 % FHA ..the FHA guidelines have recently changed to make FHA Spot Loans ( FHA loans that are written in buildings where as the entire building isn't approved for FHA, the lender would a apply for a "exception" and ask that FHA approves the a lower down payment loan for the individual unit based on the the FHA guidelines)

Read more: FHA Condo Approval Process–Guideline Changes and How They Affect Your Purchase
http://blog.theshallisgroup.com/category/financing/

Here is were it gets even scarier ....Fannie/Freddie IE "Todays only secondary mortgage market" and any private/ portfolio lenders are going to follow the newest Fannie Guidelines ..

The restrictions have already begun to truly put a strain on the buyers ability to finance a condo or townhouse units. God for bid the building has a assessment or law suit taking place ....the banks are avoiding these properties like the plague... Fannie is will to working with Developers on a case by case basis according to Patrick Connolly of Fannie Mae project approval department.

In my professional opinion the finance of condos and the lack of PMI companies willing to underwrite the PM Insurance on these loans will have a tremendous impact on sales over the next 18-24 months.

Please feel free to email and or call me to discuss in detail !

Sincerely,

Sean T. Shallis
Broker/Sales Associate
Senior Real Estate Strategist
Weichert Realtors and The Shallis Group
1 Newark St, Hoboken, N.J. 07030
Office: 201-653-8488
Direct: 201-427-1032
Cell: 201-988-1393
Fax: 201-427-1022
sean@theshallisgroup.com http://www.theshallisgroup.com