Fannie To Tack On 3/4% Fee On All Condo Loans Made With Less Than 25% Downpayment

The Chicago Tribune reports:

• With many lenders already casting a wary eye on condo loans because of their default rate, Fannie Mae has upped the ante by adding a fee of .75 percent of the loan amount of a 30-year fixed mortgage, for borrowers who put down 25 percent of the purchase price or less, effective April 1. In simple math, for a condo priced at $300,000, with a mortgage of $240,000 (a 20 percent down payment), if Fannie will be purchasing the loan from your lender, it will assess the buyer an additional $1,800.

For more, see Fannie Mae's added fee to crunch condo buyers.