Wednesday, April 23, 2008

New Loan Restrictions on New Condo Complexes

This is a rumor, but if it's true, it's not so great news for condo developers: As of May 1, Countrywide will not fund any purchase money loans for condos in developments that aren't at least already 50% sold. For example, if you'd like to buy a condo in a new development with, say, 40 units, at least 20 units need to be already sold for you to get a loan from Countrywide. Okay, you may not want a loan from Countrywide (who would?) but this is just another restriction on your choice of lenders. And if Countrywide is going this way, expect the rest of the lending industry to follow.

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