Securing a mortgage for a Washington condo requires more than just good credit and income.
Fannie Mae, the major buyer of mortgages, has strict guidelines that impact loan availability. One key factor for Fannie Mae approval is the condo association’s reserve study.
A Washington state reserve study analyzes upcoming expenses for major repairs and replacements of common areas like roofs, siding, and plumbing. This plan ensures the association has enough money saved to cover these costs, avoiding special assessments for condo owners. Fannie Mae cares about reserve studies because they demonstrate the association’s financial health and ability to maintain the property.
Condo projects without Fannie Mae approval face challenges. Securing financing becomes difficult as lenders typically sell their loans to Fannie Mae. For Washington condo buyers, ensuring the project has a healthy reserve study and Fannie Mae approval is crucial for a smooth mortgage process.
