Fannie and Freddie Mac Rules On Loans For Condos

Here are some rules Fannie and Freddie require if a lender seeks government backing for a condo loan:

1. - Owner-occupancy must be 51% or more throughout the complex.
2. - At least 70% of units must be pre-sold, in a new complex .
3. - Approval is required by Fannie's Project Eligibility Review Service, in a new complex.
4. - Condo association dues can be late for no more than 15% of unit owners.
5. - No more than 10% of units can be owned by a single investor, individual or firm.
6. - A minimum 25% down is needed for a condo loan. Otherwise buyers must pay closing-cost fees equal to 0.75% of the loan, regardless of credit score, under new rules that began in April.

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