The Manhattan Times

by Daniel P. Bader

A dozen Riverside Drive buildings in the midst of becoming condominiums have received the backing of the government-owned mortgage supergiant Fannie Mae, making the path to home ownership in the condo conversions a lot easier.

“The mortgage market has been a little crazy over the last year,” said Citi-Habitats agent Sandy Edry in a note of understatement. Since the recession and housing crisis started in 2008, most banks want buildings to be 50-percent pre-sold before they’ll free up the money for their customers’ loans. For condo conversions like Edry’s, where rental tenants are welcome to stay until they want to move, that can be a problem.

“That sort of put a damper on a lot of condo conversions, especially uptown,” Edry said.

“You generally don’t get 50 percent for at least several years.”

Before the recession lenders like Wells Fargo and Sovereign would loan to buyers in buildings that were as low as 10 percent sold.

The sponsor of the buildings went directly to Fannie Mae and requested that the agency approve the buildings for mortgages.

Edry said each building was visited by Fannie Mae and received an inspection.

Fannie Mae gave approvals to 12 of the buildings Edry represents from Hamilton Heights to Washington Heights.

Potential homeowners could seek a Fannie Mae loan to buy one of the apartments, but the secondary benefit comes from the heft the housing giant carries – with Fannie Mae’s backing, banks feel better about lending to their customers.

“We’re already seeing an impact at how banks are looking at loans,” Edry said. “It just makes it so much easier to get the approval [new homeowners] need to buy the apartment.”

The apartments, located on scenic Riverside Drive, are reasonably priced for Northern Manhattan. One apartment in contract is a three-bedroom with a washer and dryer in 807 Riverside Drive, listed at just over $600,000.

“They’re all prewar buildings. We do gut renovations of the apartments,” Edry said.

That means amenities like granite countertops and new appliances and relatively low maintenance fees.

Edry said the sponsor keeps the fees low by keeping the buildings simple. There are no frills like roof decks, doormen or workout rooms – however once the conversion is finished the condo board can decide to add new amenities.

The Fannie Mae seal of approval builds on the help that another federal program provided Edry’s business this year: the $8,000 federal tax credit for first-time homebuyers. Since June Edry said he’s sold 20 apartments.