Friday, March 20, 2009

Condo Buyers May Have a New Way to Leave Contracts, Thanks to Fannie Mae Rules

New rules from Fannie Mae that tighten lending requirements for condo buyers could give buyers a new way to walk away from their contracts—and recoup their deposits. Already, condo developers have seen a higher rate of buyers foregoing deposits or suing to get their earnest money back.

The new Fannie Mae guidelines increase to 70% from 51% the number of units that must be sold or under contract in order for buyers’ loans to be eligible for purchase by Fannie Mae.
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