RSS
Print This Post Print This Post

Fannie Mae’s New Condo Guidelines by C.J. Coury

cj-courey

Navigating Through Fannie Mae’s New Condo Guidelines

By C. J. Coury

On January 15th, Fannie Mae changed their requirements for the purchase of condominium mortgage loans in the state of Florida. While these changes are certainly going to make it more difficult to obtain financing on these purchases there are some things that you can do to help mitigate this obstacle. Below are the most significant changes as well as some helpful tips.

Full Review of Existing Projects: Many lenders will have the ability to review and approve existing projects. This will save substantial costs ($1,200 + $30 per unit) vs. obtaining project approval through Fannie Mae. It will be necessary for the lender to contact HOA management to have their full review form completed. Help to expedite loan approval by providing them with the contact information.

Fannie Mae Review of New and Newly Converted Projects: On any newly constructed or newly converted projects a PERS review by Fannie Mae is required. The cost of this review is $30 per unit as they are currently waiving the $1,200 fee. Once a review has been completed the results will be posted on their web site at www.efanniemae.com. Prior to listing any Florida condominium for sale you should first check this site and obtain approval if it is not yet listed there. Set the right expectations and allow them time to complete their review – currently projected to take 2 weeks.

Pre-sale Requirements: The pre-sale requirement for new or newly converted attached projects has increased from 51% to 70%. However, this requirement can be waived on a project that has received a PERS review (see above) so I don’t see this as being much of an issue at this time.

HOA Dues: No more than 15% of the unit owners can be 30 days or more past due on their condominium/association fees. Not much you can do about this one other than ask the HOA management in advance.

Insurance Requirements: Although it has always been a good idea, individual “walls in” coverage has never been a requirement. This will now be required of the buyer on most projects. This will be determined during the project review process (see above). Again, best practice is to obtain project review in advance.

There are a few other changes to their approval requirements but these are the primary ones that you should understand and discuss with your seller or buyer.

Be proactive when listing or selling a condominium to learn if financing the purchase will be an issue.

BIO
C. J. Coury is a Senior Vice President with Bank of America and oversees their residential mortgage division serving Sarasota, Manatee and Charlotte Counties. Prior to joining Bank of America in 1995, C. J. was President of Mortgage Brokers of America in Birmingham, MI for 7 years. He has been an active mortgage finance professional since 1983. C. J. may be reached at (941) 952-2888 or by email at charles.j.coury@bankofamerica.com.

Share

Tags:

Leave a Reply


Featured Properties

Ads

REAL HAPPENINGS

April 2, 2020 Ringling Underground

April 2, 2020 Ringling Underground

CANCELLED Ringling Underground CANCELLED. Enjoy live music, and art in the Museum of Art Courtya[...]
CleanSlate Property Services Opens

CleanSlate Property Services Opens

CleanSlate Property Services, a local concierge handyman business. My name is Tim White, former [...]
March 5, 2020 Ringling Underground

March 5, 2020 Ringling Underground

Ringling Underground Returns. Enjoy live music, and art in the Museum of Art Courtyard 8:00pm -1[...]
March 6, 2020 Gettel Toyota Grand Opening

March 6, 2020 Gettel Toyota Grand Opening

You're Invited To Gettel Toyota Of Bradenton's Grand Opening. On Friday, March 6th, from 12pm-2:[...]
March 12-13, 2020 Pop Up Art Show

March 12-13, 2020 Pop Up Art Show

Sarasota Architectural Salvage Hosts Event To Support Local Artists. For more information and/or[...]
February 6, 2020 Ringling Underground

February 6, 2020 Ringling Underground

Ringling Underground Returns. Enjoy live music, and art in the Museum of Art Courtyard 8:00pm -1[...]
January 25, 2020 Spoons And Tunes

January 25, 2020 Spoons And Tunes

TheWineToBuy.com Hosts Innovative Wine Tasting. Tired of the same old BS? Then join TheWineToBuy[...]
February 7, 2020 Thunder By The Bay Kick Off Party

February 7, 2020 Thunder By The Bay Kick Off Party

White Buffalo Saloon Hosts Born To Be Wild! Join REAL as we kick off 2020's Thunder by the Bay. [...]
Curb Appeal Detailing Opens New Sarasota Location

Curb Appeal Detailing Opens New Sarasota Location

Auto Enthusiasts Take Note. Curb Appeal Detailing announced the opening of their new location i[...]
January 11, 2020 National Hot Toddy Day

January 11, 2020 National Hot Toddy Day

How To Warm Up On A Chilly Day. Today is National Hot Toddy Day! A hot toddy is a delicious drin[...]
Anheuser-Busch Launches New Hard Seltzer

Anheuser-Busch Launches New Hard Seltzer

Bud Light Seltzer Arrives Just In Time For The Super Bowl! Anheuser-Busch is launching a new har[...]
Ocala Gains New Urgent Care Center

Ocala Gains New Urgent Care Center

StatMed Urgent Care Center Ocala Opens January 2, 2020. StatMed Urgent Care Center is a step abo[...]
New Year's Eve 2019-2020 Tow To Go

New Year's Eve 2019-2020 Tow To Go

Everyone Have A Safe New Year’s Eve Tonight! Tow to Go is a partnership between AAA & Budweiser.[...]
Wyze Labs Data Breach

Wyze Labs Data Breach

Multiple Data Breaches Exposes Information Of 2.4 Million Customers. Wyze Labs' low cost, inter[...]
Westbound SR 70 Southbound I75 Ramp To Close

Westbound SR 70 Southbound I75 Ramp To Close

8 Months of New Detours Loom Large! Starting at 11 p.m. Thursday, January 2nd, the westbound on-[...]
Wawa Data Breach

Wawa Data Breach

Wawa Facing Wave Of Lawsuits Over Data Breach. On December 10, Wawa's information security team [...]
December 26, 2019 Deck the Halls @ Ca' d'Zan

December 26, 2019 Deck the Halls @ Ca' d'Zan

Ca' d'Zan All Decked Out. On December 26th, from 5:00pm – 8:00pm join The Ringling for Deck the [...]
January 22, 2020 Ringling's Wisconsin Pullman Tour

January 22, 2020 Ringling's Wisconsin Pullman Tour

Private Tour of the Wisconsin Pullman Car. Join Jennifer Lemmer-Posey, Tibbals Curator of Circus [...]
Commercial Investment Division Changes Name

Commercial Investment Division Changes Name

RASM Commercial Division Now Know As Commercial Real Estate Alliance. The Realtor Association of[...]
December 3, 2019 GivingTuesday

December 3, 2019 GivingTuesday

Join the GivingTuesday Movement. GivingTuesday is a global generosity movement unleashing the po[...]
Translate »