Fannie’s to Save Florida Condo Market
January 18th, 2010 by daphne reyes
Fannie Mae has designed a new policy to provide more mortgage money to stimulate condo sales in Florida. They will be providing special approvals for loans for condo units that usually don’t qualify for financing. This includes more than 51 buildings in the hard-hit Miami area with about 17,000 units. They will have a dispatching team to check the buildings to see if they can give an exception.
Fannie official said that they have come up with this to save the condo sales. To provide liquidity to the currently depressed condo market caused by speculative overbuilding, walkaways by earlier buyers abandoning sales contracts, tanking prices and financially-troubled condo associations.
Majority of realtors reacted positively to Fannie Mae’s new policies. They say that it will create a real opportunity to move condo units that were sitting unsold. Investors who have purchased multiple blocks have ended renting it out longer before actually selling it. “No question this will be great news to investors who managed to get in low,” said Jack McCabe of McCabe Research Associates of Deerfield Beach, a condo market feasibility expert.
