Changes to Lending Rules for Florida Condos
Posted by Benjamin Dona on Sunday, April 4th, 2010 at 4:59pm.
In an attempt to bolster the sluggish Florida condo market, Freddie Mac (FHLMC) announced it is waiving lending rules that made it harder to buy and sell units in many condo buildings. Effective immediately, the mortgage giant will once again back loans on condo purchases in financially troubled complexes as long as the seller's loan is already owned or securitized by FHLMC. The move is a reversal by Freddie Mac, which had been rejecting mortgages for units in complexes with low occupancy rates or high association fee delinquencies. The change is intended to increase financing availability and runs through March 31, 2011.
Freddie Mac's counterpart Fannie Mae (FNMA) also announced a separate plan for Florida condos. It currently is reviewing hundreds of condo projects within the state that don't qualify for FNMA loans. Complexes deemed stable will be given a "special approval" and lenders will once again be allowed to offer mortgages to condo buyers and sell those loans to Fannie Mae.
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