Fannie Looking to Aid Florida Condo Market

Fannie Mae has streamlined the process for approving condominiums in Florida through the creation of a "Special Approval" designation. Until now, the government-sponsored enterprise had been granting exceptions to its condo eligibility guidelines for loans on units in those projects not eligible on a case-by-case basis. With the new program, there is a dedicated team that is reviewing condo projects in the state that do not currently meet Fannie Mae's standard eligibility criteria. They will assess such items as occupancy, homeownership association dues, the financial stability of the project and the property's condition. Those that are considered sufficiently stable are granted the "Special Approval" designation, meaning lenders can originate and sell loans secured by units in those projects to Fannie Mae. Those projects that are eligible will be listed on www.eFannieMae.com. The designation is effective for a period of between nine and 18 months and applies only to established condo projects.