Lending giant Fannie Mae is slapping tough new requirements
Fannie Mae’s timing ”couldn’t be worse,” said Jack McCabe, a South Florida real estate consultant who believes the region is mired in a housing depression. “This is effectively going to make it much more difficult to qualify.”
NEEDED TO QUALIFY
The new conditions include:
• No more than 15 percent of unit owners can be 30 days or more past due on association fees.
• For new condo buildings and condo conversions, at least 70 percent of units must have been sold or put under contract. That’s up from 49 percent previously.
Charles Foschini, vice chairman of debt and equity finance for brokerage CB Richard Ellis in Miami, said Fannie was protecting investors, borrowers and taxpayers, as it should in a climate of increased risk.
Borrowers will benefit, he said, by knowing they are moving into a condo complex that is adequately funded and has plenty of reserves, allowing them to predict their monthly expenses.
”From the taxpayer’s perspective . . . the quicker we can instill sounder underwriting practices for mortgages for Fannie or anyone else the more confidence we’ll have in the market,” Foschini said.
If you are looking to buy a condo in the Tampa Bay area and would like a list of approved condos, please send us an email with your request: [email protected] subject: approved condo list.Our phone number is 813 784 7744 should you have any questions. Rae Catanese, PA Real Estate Agent -Prudential Tropical Realty-Tampa,FL