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Fannie Me changes underwriting guidelines for Florida Condos

January 26th, 2009 11:02 AM

On January 15th, Fannie Mae ammended their lending guidelines for all condos in the state of Florida. All condos located in the state of Florida will require a full lender review, regardless of the loan to value of the transaction. The new criteria for owner occupancy %, pre-sale requirements, insurance reqirements, and HOA budget info are summarized as follows:

Limited Review condo guidelines are no longer available for all condo transactions in the state of Florida.
Presale requirement for new projects has been increased from 51% to 70%. The definition of pre-sold is 70% of the total units in the project must have been conveyed or be under a bona fide contract for purchase to principal residence or second home purchases.
No more than 15% of the condominium/association dues can be more than one month delinquent.
10% of the HOA budget should be allocated towards reserves.
Buyers are no required to obtain a "walls in" insurance coverage policy.
No single entity may own more than 10% of the condo units.
No more than 20% of the total space may be used for non-residential purposes.

For up to date information on all condo projects, please call our office.

Posted by Chris Sturdivant on January 26th, 2009 11:02 AMPost a Comment (0)