New Condo Loan Rules Put More Scrutiny on Neighbors

The Washington Post reports:

Condo owners share more than roofs and lobbies these days. They also share one another's financial burdens. New mortgage industry policies are forcing lenders to look more closely at the makeup of entire complexes before extending loans to prospective buyers or to people who want to refinance.

The increased scrutiny is making it tougher to buy -- and hence sell -- condos, which are widely considered the housing market's shakiest segment because they are popular with speculators and financially vulnerable entry-level buyers. The policies are also exacting higher fees and larger down payments from condo buyers while limiting where they can live.

You'll want to read the whole article.