Say it ain’t so… but after what seems like eons of having to tell our clients that there are virtually “no loans on condos,” the situation may be about to change.
As reported in the Orlando Sentinel mortgage backer Fannie Mae is finally making it easier for people to buy Florida condos that may not have met prior lending standards.
Certain condo complexes have finally started to receive “special approval” designations, that will allow loans to be made – even when the properties don’t meet one or more of the pre-established rules with respect to delinquent fees, financial reserves and percentage of owner-occupied units.
The great news is that Florida is the only state getting these reviews – which are a first for the Fannie Mae giant.
Teams are now reviewing condos and granting the approvals in cases where the projects are considered stable (even though they may still violate a current Fannie Mae lending standard). For example, a project doesn’t currently qualify for Fannie Mae-backed mortgages if more than 15 percent of the unit owners are behind on their association fees – a rule which frankly has been regarded as a little too harsh.
The Sentinel notes that these condos can viewed at efanniemae.com under (but doesn’t mention that so far, there are no Orlando condos on the list).
According to data from the Florida Association of Realtors, condo prices have fallen more in Orlando than in most U.S. metro areas making them some of the best deals around. The median price for a unit in Metro Orlando in November 2009 was just $55,000, down 21 percent from a year earlier.
Of course Fannie Mae isn’t the only way to get a mortgage. FHA backed mortgages are also available in some cases, although these also don’t generally extend to the condominiums that Fannie Mae has also struggled with until now. Of all the downtown Orlando condos, only one such complex currently qualifies, 101 Eola Condos.
For more information and the lastest Orlando condo news, call Orlando’s condo specialist brokerage, Condo Metropolis on 407-901-5161.