New Guidelines for Condos with High Master Insurance Policy Deductibles: What Realtors and Buyers Need to Know

Hello, I’m Reem Misto from National Pacific Lending. Today, I want to share some important information about new guidelines from Fannie Mae and Freddie Mac. These changes affect condos with a high master insurance policy deductible per unit, specifically when the deductible is over 5%. If you’re a realtor or a potential condo buyer in California, this article will help you understand your financing options.

Understanding the New Guidelines

Fannie Mae and Freddie Mac have introduced new rules for condos with high master insurance policy deductibles. This can be confusing, but don’t worry—I’m here to explain it simply.

• Master Insurance Policy Deductible: This is the amount that the condo association must pay out of pocket before the insurance covers the rest. If this amount is more than 5% per unit, it’s considered high.

Financing Options for Condo Buyers

If you’re looking to buy a condo that falls under these new guidelines, there are still good financing options available:

1. Owner-Occupied Condos (FHA Loan):
   • If the condo is FHA approved and you plan to live in it, we can finance it with an FHA loan.
   • FHA loans are great because they often have lower down payments and easier credit requirements.
2. Investment Properties (Non-Warrantable Condo Program):
   • If you’re an investor looking to buy a condo, we can finance it through a non-warrantable condo program.
   • This type of loan may have a slightly higher interest rate than a conventional non-owner occupied loan, but it’s still a solid option.

Why Work with Reem Misto at National Pacific Lending?

Navigating these new guidelines can be tricky, but you don’t have to do it alone. As a trusted Mortgage Advisor at National Pacific Lending, I will walk you through every step of the process. Whether you’re buying a condo to live in or as an investment, I’m here to make sure you get the best financing option available.

Understanding these new guidelines and your financing options is crucial. Whether you’re a realtor or a condo buyer, knowing about FHA loans and non-warrantable condo programs can help you make better decisions. If you have any questions or need assistance, please feel free to reach out to me.

I’m Reem Misto from National Pacific Lending, and I’m here to help you every step of the way. Let’s make your condo buying experience smooth and successful!