"After booming and crashing, Detroit's condo market is starting a comeback"
Key information from the article for Manors co-owners:
Local development experts say the reason most large banks haven’t sold mortgages for new Detroit condos is that the buildings are considered nonwarrantable, meaning Fannie Mae, Freddie Mac and the FHA are unwilling to buy loans on the secondary market that originated in such buildings.
This situation makes the mortgages riskier for lenders, who must keep the loans on their books rather than sell them off.
In 2012, Detroit-based First Independence Bank became one of the first lenders since the recession to write mortgages for new Detroit condo buildings with 10% to 20% down payments.
At least five other local banks and credit unions have since followed suit.
- First Independence Bank
- Quicken Loans
- Ross Mortgage
- Lake Michigan Credit Union
- Talmer Bank and Trust
- Huntington
- Level One Bank
