It is going to get easier to buy a condo/townhouse due to changes in Insurance requirements

  📍 When you, if you're looking for a house or um, townhouse or condo in Arpa Valley, Corona or Riverside, you'll notice that if it's under like $600,000, you'll get a bunch of units that have been on the market for a while. Well, it's not that people don't wanna buy them, it's that a lot of 'em cannot be because they don't qualify for conventional financing.

Fannie Mae and Freddie Mac are now revisiting this. Lemme explain. In order for Fannie Mae and Freddie Mac, which are government agencies that insure loans. Um, for them to ensure loan, certain requirements ha have to be met and a lot of these ho could not meet their requirements. Therefore, the units in the complex did not qualify for conventional financing.

So in essence, you pretty much had add a lot of money or gas, and that sucks for the buyers and that really sucks for the sellers. What they're doing now is they're changing to an a CV model. I'm not gonna go into too much detail, but in essence what this means is that it's gonna be easier now for the in, for the HOAs to get insurance.

They cover these big roofs. That was a big issue 'cause they were so expensive and in getting that insurance, Fannie Mae and Freddie Mac will now insure those properties, which means that you now can buy this unit as a first time buyer. Um, they were just really strict before and now they're revisiting that.

So by loosening the insurance requirements and simplifying the rules, they made it. They make it now where more buyers can finance these units, which means they should start to sell again. Um, it's pretty much expands for FHA and conventional, uh, lo uh, first down, low down payment buyers and first time buyers.

Alright, but there's a catch. There's always a catch. The catch is that starting next year, HOAs are gonna have to have, uh, instead of 10% reserves, they're gonna have to have 15% reserves, which I don't think is a bad thing, but that means that HOAs are going to have to hold off on doing certain maintenance or the HOA fees are gonna go up.

But I think personally that is a small price to pay for the idea that now first time buyers can actually buy a condo or townhouse when before they could not because of insurance issues. What do you think? What are your thoughts?