Condo buyers find it tough to get mortgages

The San Francisco Chronicle reports:

Back in September, when Tae Hong signed a contract to buy a condominium in Oakland's new Pacific Cannery Lofts, he expected to move in quickly. With a 20 percent down payment, excellent credit and good employment as an options trader, he seemed assured of qualifying for a home loan.

But Hong, 26, couldn't get a mortgage. The problem wasn't with him - it was with new, tighter rules for condo loans that are affecting entire developments.

"Suddenly, the (Federal Housing Administration) increased the presale requirement from 25 percent to 51 percent" of the units, said Gail Stark, director of sales for the Pacific Cannery Lofts. "Then we had months of uncertainty. It was extremely frustrating; we had about 10 canceled contracts with buyers who couldn't wait any longer."

You haven't seen the bottom in the condo market.