Fannie Mae's New Condo Rules

The Wall Street Journal reports:

As of March 1, Fannie Mae will no longer be financing new condo developments where less than 70% of units have been pre-sold. Before, the cut-off was 51%. It also bans mortgages in projects where 49% of all units are owned by investors, where more than 15% of owners have fallen behind on paying association dues or where more than 10% of the units are owned by a single investor, individual or company. Freddie Mac is getting tough on condos, too: Recently, it upped the minimum down payment on condo loans to 25%.