Florida Home Buyers and Investors Blog

Fannie Mae has instituted stricter underwriting guidelines for people considering the purchase of Condos.  For those of us in the business, we already know that getting a loan on a condo is next to impossible.

Well, here is why.

Florida was singled out by Fannie Mae as high risk, and project eligibility for condo conversions and new construction require that atleast 70% of the units in the project are conveyed to a bona fide purchaser as a principal resident.  Up from 51% previously.

Also, no more than 15% of the total units can be 30 days or more past due on their Condo Association fees.

To add insult to injury, Fannie Mae has instituted a .75% fee on the loan amount paid by the borrower, for loans with less than 25% down payment.  75% LTV... or less.

Well we all know that the majority of Condo associations are under severe distress and primarily owned by investors, to all the apartment complexes that converted to condo, are now going back to apartments, because the only people able to purchase these units are CASH investors, who are getting GREAT deals.

Let us know if you are a CASH buyer looking for positive cashflow investment condos of 8%+ Yield after expenses.