Fannie Mae announced on January 7 that they are reviewing hundreds of condominium projects in Florida to allow them to earn a "Special Approval" designation meaning lenders can approve Fannie Mae loans for buyers in the developments.
A group of real estate professionals based in Florida will review condo projects across the state to look at occupancy rates, homeowner association dues, property condition and the financial stability of the projects to approve them for Fannie Mae loans. The developments must be sufficiently stable to earn the "Special Approval" designations.
The approvals will be given for established condo projects, not new ones, and will be good for 9 to 18 months. As soon as each condo project is approved, it will be listed on the Fannie Mae website at www.eFannieMae.com.
National Association of Realtors First Vice President Moe Veissi, broker-owner of Veissi & Associates in Miami said, "NAR applauds Fannie Mae for taking this important step to make condo loans more readily available in Florida. Our state is probably the hardest hit as far as the condo market is concerned, and Fannie Mae's new effort to take a closer look at project eligibility could go a long way to putting projects back on a healthy financial track."
Condo financing has always been a little more difficult to obtain for borrowers because lenders need to evaluate not only the individual home and homeowners, but also the financial stability of the development itself.
Written by Michele Lerner
HULIQ.com
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