Why do mortgage lenders ask how many floors are in a condo building?

One Response to “Why do mortgage lenders ask how many floors are in a condo building?”

1. knight01 says:

   October 28, 2010 at 1:47 pm

   Lenders usually sell the loans on the secondary market. Fannie Mae, Freddie Mac and FHa make up the majority of the conforming secondary market. They generally consider any condo complex 4 stories or higher to be a high rise and any less than 4 stories to be a low rise.

   High Rise units have additional fees passed onto the lender from these secondary market agencies.

   So, in order to ensure they quote you an accurate rate they need to know what fees they may incur when selling the loan at a later time. Knowing how many floors are in a condo complex answers one of those questions. :>

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