The Going Gets Tougher – Fannie & Freddie Requirements

THOUGH the economy appears to be stabilizing, the market for financing remains tight.

THE MORTGAGE WARS Dr. Stephen Krieger and Dr. Nada Gligorov prevailed over a lender who didn’t like the size of their prospective building’s reserve fund.

By ELIZABETH A. HARRIS

Some people are able to get mortgages without much trouble, but others find the process arduous, mystifying and prolonged. Then there are the buyers who think their financing is secure, only to see it evaporate sometime between the signing of the contract and the closing table.

“Is it a problem? Yes, it’s a problem,” said Dottie Herman, the president of Prudential Douglas Elliman. “When these things fall through, it’s not because people are destitute — they have good incomes. It’s because banks are very, very tough now.”

Banks can be such sticklers that missing just one payment on a bill can result in a thumbs down. Change jobs and expect the microscope. To complicate matters, sometimes it is the buildings themselves, not the buyers, that fail to qualify, thanks to new or newly relevant Fannie Mae and Freddie Mac lending guidelines.

Continue to Full Article at NYTs

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