The Florida condo market has been in a slump lately; mostly because the units are difficult to finance and require larger down payments than any other purchase. Well good news is on the horizon thanks to changes in some Fannie Mae policies.
Fannie Mae announced on January 7, 2010 that it is taking a comprehensive review of hundreds of condominium projects in the state of Florida in an effort to allow additional projects to become Fannie Mae eligible through a new “Special Approval” designation. Prior to this announcement, there were only three or four condominium projects that were approved for Fannie Mae financing within Brevard County. Some lenders were able to get individual units approved but it would take a lot of paperwork and research to make that happen.
There are six in state professionals that are going to take an in depth examination of hundreds of condominium projects to review home ownership, financial stability, occupancy, project condition and association dues. After projects pass the new criteria, they will earn this “Special Approval” and lenders will be able to originate and deliver mortgage loans secured by units in these projects. This special approval will streamline the loan process for many available condo units on the market and open up selling opportunities across Brevard County.
The Special Approval designation are effective for periods between 9 and 18 months and lenders are required to confirm the project’s approval on the date of loan application. This initiative is only intended for existing projects and not new condominium developments that are currently under construction.
February 2nd, 2010 at 4:23 am
So nice of you sharing this with us, i’m looking to improve my salesman skills so always on the hunt for new ideas and materials.