Mortgage Blog

Fannie Guideline Changes for Condos

December 16th, 2009 7:11 PM by Eric Fang

1)HO-6 Insurance requirement.
It requires that the borrower obtain a "walls-in" coverage policy (commonly known as HO-6 policy) unless
the lender can document that the master policy provides the same interior unit coverage.

The HO-6 insurance policy must provide coverage in an amount that is no less than 20 percent of the
condominium unit's appraised value. The standard requirement for a 5 percent deductible applies.

And the premium for this coverage is around $600.

2)Owner-Occupancy Ratio Requirements
The ratio should be at least 51%.

3)Delinquency Rate
No more than 15 percent of the total units in a project can be 30 days or more past due

4)For attached condos, some lenders requires CLTV 80% or less.

Posted in:General
Posted by Eric Fang on December 16th, 2009 7:11 PM



My Favorite Blogs:

Sites That Link to This Blog:

1288 Kifer Road Suite 208
Sunnyvale, CA 94086