Assurance of Your Property’s Qualification by Fannie Mae
The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is the benchmark for Cooperative and Condominium unit loan qualifications. Unit owners who are attempting to sell their apartments may find that their prospective purchasers are encountering difficulty in obtaining a mortgage if their property is not approved by or eligible for sale to Fannie Mae. When these unit owners have difficulty selling their apartments, they turn to the Board who then in turn find they must obtain a crash course in the Fannie Mae guidelines. These guidelines are published in Fannie Mae’s “Selling Guide” which is prepared for Lenders. To understand why these issues have arisen, it is important to understand that Fannie Mae and Freddie Mac originate 90% of the end loans obtained by unit owners. Freddie Mac’s guidelines are more difficult to meet, however, Fannie Mae buys substantially more loans. Therefore, Fannie Mae has become the traditional association that most properties need to be concerned with.
The key to success is an investment in understanding and communication to assure that your Board does not receive the worry that the property is not Fannie Mae qualified and an important mortgage commitment or prospective sale is about to be lost. Our staff is well-versed with the requirements and is available to work with you to avoid qualification issues in advance.