Fannie Mae, the too-big-to-fail public-private mortgage company, approved 123 new Florida condo projectsÂ for financing in the firstÂ half ofÂ of 2010, a stark contrast to 2008 when not a single condo community was accepted, according to a new report from condovultures.com in Miami.
New condo project approvals for financing in 2010 have already risen by more than 40 percent compared to 2009 when 87 projects were deemed acceptable for mortgages by Fannie Mae. No new Florida condos were approved for financing in 2008 after 27 projects were approved in 2007, according to the report.
New condominium projects that fail to receive Fannie Mae approval are virtually locked out of conventional financing where interest rates are at record lows making for an all-cash market.
“Fannie Mae has made a seismic policy shift in its outlook for new Florida condos,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-basedÂ Condo VulturesÂ® LLC. “Back in 2008, Fannie Mae’s underwriters failed to approve a single new Florida condo for financing. Today, Fannie Mae is approving projects at a pace of more than 15 condo applications per month.”
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