Monday, June 28, 2010

Financing rules complicate search for dream condo

If youve been looking to buy a condo in the Washington area, you know there are deals to be had. But look carefully before you leap, say real estate agents and some buyers. A multitude of rules could block your way, reports the Washington Post.

Prices in many areas -- not counting hot Metro-centric neighborhoods such as Rosslyn-Ballston and Dupont Circle and Logan -- are expected to stay flat this year, a condition that favors buyers. But borrowers need to have stronger credit and less debt than in the go-go years, even though interest rates are near record lows. And some people are finding that although they may qualify for financing, the building they have fallen in love with does not.

The Federal Housing Administration tightened loan guidelines in the past two years on borrowers and on buildings. Fannie and Freddie, have similar condo review rules for loans they will buy.

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