Buying a Condominium Is Getting More Expensive
The Chicago Tribune reports that Fannie Mae, the mortgage giant, has increased fees for obtaining a 30-year fixed loan to purchase a condominium. Unless a buyer makes a downpayment of 25% of the purchase price or more, a fee of .75% of the loan amount will be added. For example, for a condominum with a price of $300,000, a buyer must make a minimum downpayment of $75,000 to avoid an additional fee on the loan.
The article points out that because of these price increases, many people turn to the Federal Housing Administration (FHA) for low-down-payment loans. This change merely shifts the risk from Fannie Mae to FHA. See the FHA and Fannie Mae websites for more information.
This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.
The article points out that because of these price increases, many people turn to the Federal Housing Administration (FHA) for low-down-payment loans. This change merely shifts the risk from Fannie Mae to FHA. See the FHA and Fannie Mae websites for more information.
This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.
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