Fannie Mae, Freddie Mac won’t buy condo, co-op mortgages in community Associations in need of critical repair

Just before the Christmas holiday season, both Fannie Mae and Freddie Mac issued new “temporary guidance” for sellers of units in condominium and cooperative housing projects in the U.S.

On behalf of any buyer that’s planning to make a mortgage purchase of a unit, all condominium and cooperative HOAs must now disclose major deficiencies in the community, as well as any current or pending special assessments intended to pay for major repair and reconstruction. That guidance could be a game changer in the market for condos and co-ops.

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