More tinkering from the mortgage gods are making condos tougher to finance
Fannie is at it again. New condominium financing regulations will now require borrowers to carry a "Walls-in" policy to cover where the condo master policy leaves off. A quick conversation with my personal insurance agent (Patrick Kelly, State Farm) taught me a bit about these policies. I was trying to estimate the coverage amount for a typical purchase, but they assured me that it's not quite that simple. Like everything these days, credit score and other factors will make a difference for the borrower. I was able to determine that the range for a $100k plan could run anywhere from $200 to $400 per year. I promised not to hold them accountable to those numbers exactly, as they are pure estimates. This is important because the cost must be included in qualifying ratios.
Fannie is at it again. New condominium financing regulations will now require borrowers to carry a "Walls-in" policy to cover where the condo master policy leaves off. A quick conversation with my personal insurance agent (Patrick Kelly, State Farm) taught me a bit about these policies. I was trying to estimate the coverage amount for a typical purchase, but they assured me that it's not quite that simple. Like everything these days, credit score and other factors will make a difference for the borrower. I was able to determine that the range for a $100k plan could run anywhere from $200 to $400 per year. I promised not to hold them accountable to those numbers exactly, as they are pure estimates. This is important because the cost must be included in qualifying ratios.
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