Anyone have any advice on project review for a new construction building? I hear you're supposed to get a lender involved by the condo declaration stage.
I also hear that the smaller you go in terms of total units, the more stringent the banks will be. For example, a 2-4 unit condo new development will be tough. For 5 units and above a mortgage banker told me that you can get what's called a PERS (Project Eligibility Review Service). This makes it easier because if Fannie says yes then anyone can lend to buyers through Fannie.
Fannie does sometimes require a reserve study I've heard. For non gut rehab Freddie Mac does not I've heard.
I also hear that banks, Fannie and Freddie make a big stink about the percent of the building that's designated for commercial usage. Fannie allows max 20% commercial space while Freddie makes some exceptions up to 30% (Chase told me that 90% of their work is done through Freddie).
I've also heard about some exceptions for more reputable sponsors, with banks allowing up to 45% commercial.
And once you get your presales up to a certain percent then banks will start financing regularly, I hear the number to hit is 50% pre sold right?
I also hear that the smaller you go in terms of total units, the more stringent the banks will be. For example, a 2-4 unit condo new development will be tough. For 5 units and above a mortgage banker told me that you can get what's called a PERS (Project Eligibility Review Service). This makes it easier because if Fannie says yes then anyone can lend to buyers through Fannie.
Fannie does sometimes require a reserve study I've heard. For non gut rehab Freddie Mac does not I've heard.
I also hear that banks, Fannie and Freddie make a big stink about the percent of the building that's designated for commercial usage. Fannie allows max 20% commercial space while Freddie makes some exceptions up to 30% (Chase told me that 90% of their work is done through Freddie).
I've also heard about some exceptions for more reputable sponsors, with banks allowing up to 45% commercial.
And once you get your presales up to a certain percent then banks will start financing regularly, I hear the number to hit is 50% pre sold right?
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