Fannie, Freddie Tighten Rules for Vacation Condos

Getting a mortgage for a condo in a vacation destination could become more difficult thanks to a rules change by Fannie & Freddie (Wall Street Journal)

The updated rules, which went into effect Dec. 7 for Fannie, are starting to generate pushback from Realtors and bankers who say entire buildings could be ineligible for financing even if only some units are rented out on a short-term basis….Fannie says its revamped rules are meant to clarify longstanding policies, which revolve around the eligibility of the entire condo project, not particular units. The focus is also more on “condotel” buildings organized centrally through management, rental and realty companies than on individuals who offer their units on Airbnb Inc. or other hosting services.