Thinking of Buying a Condo?

Secondary mortgage market lenders have implemented a new and stricter set of lending guidelines which may make it more difficult for some buyers to purchase a condominium. Some of the new regulations include:

1. At least 70 percent of units in a new complex must be sold or under contract for purchase as a principal residence or second home.

2. No more than 15 percent of units in a complex may be 30 days or more past due on condo fees.

3. Insurance requirements have been made stricter.

4. Buyers must make a down payment of at least 25 percent to avoid a higher fee or interest rate.

Read the full report in the May 23, 2009 issue of the Boston Globe at http://http://www.boston.com/business/personalfinance/articles/2009/05/23/new_rules_on_condo_loans_hindering_some_buyers/.