Fannie Mae announced a new program on Thursday that could boost condo sales in Florida. The mortgage finance company is in the process of reviewing hundreds of condo projects, which are currently ineligible for its mortgage-backed loans. Buildings deemed stable after the review process will be granted special approval to last up to 18 months. Many properties have already been given the green light by Fannie Mae for this special designation.

Upon approval, lenders will have the opportunity to offer mortgages to homebuyers and sell those loans to Fannie Mae. Fannie Mae will, in turn, pool them into bonds to sell to investors.

Fannie Mae will continue to focus on a few key areas to determine eligibility for this program. The process includes reviewing the buildings’ occupancy, home-ownership association dues, financial stability and physical condition.

Previously, Fannie Mae was rejecting condo mortgages for condo buyers if more than 15% of the developments’ homeowners were delinquent on their association fees. Fannie Mae will now make exceptions to that rule. The company’s rules for new buildings remain strict as they will only guarantee mortgages in new or newly converted condo developments if 70% of the units are sold or under contract.

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Originally from Condo.com – Condo News