Florida Condo Lender Mortgage Loan Requirements
Many of the most problematic mortgage loans made in Florida were on Miami condos and condos in general. As a result, Fannie Mae has altered its guidelines for high risk Florida condo mortgage loans, as of January 15, 2009. Two of the most important requirements in the new guidelines for Florida condo mortgage loans for Fannie Mae are the following:
1. New and newly converted condominium projects must have at least seventy percent (70%) of the total number of units in the project sold and closed, or be in contract to be used as a principle residence or second home. Formerly, the requirement was fifty-one percent (51%) of total units.
2. No more than fifteen percent (15%) of the total number of units can be thirty (30) days or more past due on their condo association fees.
Although these restrictions are troublesome for buyers, they are an important step towards creating less risky mortgage loans and a more stable real estate market in both the near and long term.