Fannie Mae's "Special Approval" Designation

Buyers of Florida condominiums have been finding it more restrictive to get lenders to finance their purchase... even if they are more than qualified financially! That is why it was such good news that Fannie Mae announced last Thursday that it would comprehensively review hundreds of condominium projects in Florida. Through a new “Special Approval” designation, Fannie hopes to streamline mortgage approvals for projects that don’t currently fit Fannie Mae guidelines even though they present limited risk to the company.

Florida Realtors strongly urged Fannie Mae to revisit its lending program in the condo market, and as a result it consulted a number of Florida Realtors as it developed the program, including Florida Realtors® Vice President Summer Greene. “This is good news for Florida and a step in the right direction for the state’s condominium market,” Greene says. “Hopefully, with the special approval designation process, we can begin to get our condo inventories reduced and absorbed as more condo buyers receive a green light from lenders for loans. This will help boost confidence in the market.” *

Fannie Mae and its cousin, Freddie Mac, back more than half of all U.S. mortgages. As the Fannie Mae initiative develops and gains momentum, Greene hopes it provides incentive for Freddie Mac to follow suit.While Fannie Mae currently has boilerplate guidelines for approving condo loans, it will sometimes grant a mortgage to a non-conforming condo if requested by a lender. The Special Approval designation takes that a step further by approving exceptions before a lender request has been submitted.

A dedicated team of six Fannie Mae professionals based in Florida will now examine statewide condominium projects that may not currently meet Fannie Mae’s standard eligibility criteria and assessing specific criteria more closely. The team will look at a condo project’s occupancy level, association dues, financial stability and property condition. If a project is deemed sufficiently stable following a closer examination, it will be granted the Special Approval designation, freeing lenders to originate and deliver mortgage loans secured by Fannie Mae. Projects deemed eligible will be listed on www.eFannieMae.com, and qualified borrowers will be eligible for financing.

This is big news...

*According to the National Association Of Realtors

Come For A Visit, Stay For A Lifetime!

You may wonder about our slogan, "Come for a visit, stay for a lifetime." As 50 and 60 somethings consider where to spend their later years, there is a process to follow. When Mark and I closed our business in Atlanta in 2001, we were in that mindset. First, we spent a long weekend in a little place on Bradenton Beach. We put over 800 miles on our rental car driving along the coast to check out locations! From Naples in the south to Clearwater in the north, we covered it all. The result of that trip is that we were still young and wanted easy access to travel and other lifestyle amenities we had in Atlanta, so the Tampa Bay area seemed to give us exactly that. We were set on the west coast because of the sunsets and chose a rental directly on the beach in Indian Rocks Beach to find out if beach front living was for us... yet not commit to selling our home and bringing all the furniture down until we were convinced.

Before long, our daughter and my mother were visiting more and more frequently. When I emailed a cute little 2-bedroom condo in a beachfront complex, mom called me and said that was the one! (I didn't know she was looking!) She bought the condo and has now been there over 5 years... just loves it. Our daughter Lambdin was next! She bought a condo on the intercoastal and did a remarkable renovation to it. She became a realtor with The Purtee Team and was amazed at how many young people are in the area! She became an active volunteer in the community and member of the Junior League. When we saw her marry on the beach last year, right at sunset, we knew this place was home! Now we have Mark's father in the area, too! One of his brothers is now here frequently as well.

I have two articles to share today...
First-time homebuyers race clock
Just 12 weeks remain for eligible buyers to find and close on a home to qualify for the $8K federal tax credit by Nov. 30. Read more.

Mortgage relief program picking up speed
After a slow start, nearly one in five eligible homeowners have been offered help under the "Making Home Affordable" plan. Read more.