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A preliminary mortgage approval is only as good as the company who issues it. Find out why today’s top real estate professionals place their trust in FDM every day to deliver results...Read More

It’s no secret that the key to generational wealth is proper management of your home’s equity. This comes in many different forms, such as refinancing to better your rate and term, OR, unlocking the potential of your home’s equity...Read More

First Time Home Buyers

Let’s Face it! Buying your first home can be challenging and confusing. But know that there is help. There are down payment assistance, loan programs, State/County tax breaks designed around First time Home buyers. Read More

Specialized Lending Solutions [Niche Products]

Sometimes, “off-the-rack” might not fit you. Depending on your specific needs, a specialized mortgage may prove to be the vehicle needed to get you home. Read More

"The WONDER LOAN"

The Link Loan Program was created to help a large percentage of population that have had credit or other challenges that do not fit in Agency Guidelines AND they do not have access to 30 percent or more of purchase price...Read More

The Trends Keep Heading in the Right Direction!

June 02, 2025

Last week was a good week if you are in the market for your new home. Let us start with the housing market. We have shared over the past few weeks the housing market was shifting from the “sellers’ market” that dominated the market for the last few years to a “balanced market.” Sales prices are leveling, and in some markets, we are seeing sales prices drop. Why is this happening? According to Altos Research, the active single-family inventory was up 2.1% in a week over week comparison. Single family inventory is up 32.8% in a year over year comparison to 2024. The housing inventory pickup from seasonal lows is normally 16%. So, 2025 is seeing a larger than normal pickup in inventory. If this trend continues, as expected, housing inventory may reach 2019 inventory levels. The more houses on the market the more leverage buyers have. The fundamental economic Law of Supply and Demand works both ways. More supply than demand buyers win!

The second positive trend is the slow gradual trend to lower mortgage rates continues. While we did see a quick spike up to the highest levels in months prompted by the tariff turmoil, mortgage rates have returned to pre-tariff levels. We expect “bumps” where rates spike up for short periods and then trend back down. The up and down patterns we have experienced will continue through 2025, but the overall trend is to lower rates. This is why the knowledge of your FDM Mortgage Professional matters.

Condos?

Condominiums have become a larger segment of the market. Some buyers find condominiums a more affordable option. Some buyers choose a condominium as a lifestyle choice. The amenities available are attractive, and the maintenance of a condominium is often much easier than a single-family home. The hidden challenge is finding a mortgage for a condominium is not easy. A mortgage for a condominium is broken into two parts.

Part 1: You may qualify for a mortgage for the sales price. Your credit, income and assets all qualify for the mortgage amount you need. Did you meet those criteria? Yes, then great!

Now, Part 2: Even when you qualify for the mortgage, the Condominium Project requires approval. Did you know that, Fannie Mae, Freddie Mac, FHA, and VA all have different rules for Condominium Project Approval? What is the CPM? What is the mandatory Condominium Questionnaire? Did you know the Condominium Budget needs to be approved? 

There are other factors that are reviewed: Investor concentration. What percentage of units are owned by investors? Single entity ownership. Does one single entity own more than 10% of the total units? How many owners are delinquent paying their Condominium Fees? The structural integrity of the Condominium Project is reviewed via a mandatory Structural Addendum that the Homeowner’s Association completes. Even when you qualify for a mortgage for a Condominium the mortgage may not be approved. The Condominium Project approval is completely separate.

This is where the experience of your mortgage team matters. The FDM team of Mortgage Professionals are experts in Condominium financing. If you are ready to make an offer on a Condominium, please contact your FDM Mortgage Professional before you make an offer. Let the FDM team help you determine if the Condominium Project can be approved.