Having trouble financing the purchase of your vacation condo in Bonita Springs, Florida? Good news, then! Fannie Mae announced January 8th that it would comprehensively review hundreds of condominium projects in Florida currently and previously deemed not finance worthy.
Through a new “Special Approval” designation, Fannie Mae hopes to streamline mortgage approvals for projects that don’t currently fit Fannie Mae guidelines even though they present limited risk to the company. It is hoped that it provides incentive for Freddie Mac to follow suit.
That’s WOW WOW WOW important for Florida in that Fannie Mae and its cousin, Freddie Mac, back more than HALF of ALL U.S. mortgages AND a team of Fannie Mae professionals based in Florida will now examine statewide condominium projects that have not currently or previously met Fannie Mae’s standard eligibility criteria. If a project is deemed sufficiently stable following a closer examination, it will be granted the ‘Special Approval’ designation, freeing lenders to originate and deliver mortgage loans secured by Fannie Mae.
This ‘Special Approval’ designation will be effective for a period between 9 and 18 months, and lenders must confirm a project’s ‘Special Approval’ designation on the date of the loan application. However, this ‘Special Approval’ applies to established condominium projects only. If you’re not certain how this pertains to the purchase of your Florida condominium, ask your Lender if they’re familiar with this new regulation. If starting from scratch, give me a call.