Condo Mortgage Loans *not* Backed by Fannie/Freddie
The building I'm living in is converting all rental units to condos in the next few months in Detroit midtown. I'm interested in purchasing my unit but read in the DetroitFreePress that getting a condo mortgage is difficult because not all lenders will finance many condo purchases. Apparently this is the case because condo developments are considered "non-warrantable" meaning the loans won't be backed by Fannie Mae or Freddie Mac. Can anyone please provide a deeper insight into this and how to get around it? Is this just something specific to Detroit or is this the case for all condo mortgages. Also, an aside, should I have >20% cash ready in advance of the deal? Thank you in advance for your feedback.