Question:

What does it mean by no 1028 approval?

by Guest2740  |  earlier

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I am planning on purchasing a pre-construction townhome from the builder DR Horton. They wanted me to go with their financing, and they told me that if I shop around to make sure I tell the lenders that there is no 1028 approval. I looked this up and this means that it is a non-warranted condo, do you have any idea why they would have this as non-warranted?

 Tags: 1028, approval, mean

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1 ANSWERS

  1. Angelina

     Condo tasks should rendezvous guidelines set by Fannie may and Freddie Mac as well as fha/va in alignment for a individual to request and be accepted for a mortgage through those kinds of financing(lower rates, longer periods, smaller down payments, simpler borrowing direct lines) if a condo task is NOT approved, which these flats you are looking at are not accepted, the only financing you can get is through their investment business or your localized bank, what you will find is a much higher down as well as shorter terms. The other thing you should believe of is resale! if this condo task is not accepted ,and it isn’t, when you get prepared to deal not numerous can purchase because of the restricted financing they can get, would overtake if it were me-but it’s up to you, would purchase a home-much better for you.
    Very Rarely developers request for a FNMA 1028. You should gaze for an Investor (ABN AMRO/Interfirst and some others) that manage not inquire for the questionnaire or for the task to have a FNMA 1028.
    Furthermore read the Fannie Mae Condo Guidelines for New Construction Condo´s and the read your lender´s Condo Guidelines/doc requirements.
    If the U/W is inquiring for a 1028 you might as well take the loan and find a new dwelling for it with a Conod amicable lender.
    Good Luck

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