Fannie Mae to Help Florida's Condo Market
Fannie Mae (FNM) will complete a review of hundreds of condo projects throughout Florida, in an effort to allow additional developments to become "Fannie Mae eligible" through new Special Approval designations. A FNM team currently is assessing condo projects for specific criteria, including occupancy, homeownership association dues, financial stability of the project and property condition. Projects found sufficiently stable following the closer examination are granted a Special Approval designation, meaning lenders can originate and deliver mortgage loans secured by units in these projects to Fannie Mae.
Previously, Fannie Mae has granted exceptions on a case-by-case basis, but the new Special Approval will streamline the reviews, so qualified buyers who want to purchase units in these complexes will know the unit will be eligible for financing.
"This new initiative is geared toward providing maximum support for Florida's distressed condo market as we continue to provide liquidity to the housing market more broadly," said Karen Pallotta, Executive Vice President, Single Family Mortgage Business. "The state's condo market has been particularly hard hit by the housing downturn and we're working with the industry and our partners to do all we can to stabilize the market and help spur recovery."
Special Approval designations are effective for periods between 9 and 18 months, and lenders are required to confirm the project's Special Approval designation on the date of the loan application. The Special Approval initiative is for established condominium projects only.
If you are ready to start looking for a condo in the Daytona Beach or Ormond Beach area, call or email and I'll find out for you if Fannie Mae has completed the assessment. You may not need FNM financing, and I can find that out for you too. Take advantage of the great buys available now in our Florida real estate market!
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
(resource: REChannel)