Fannie Mae has issued new guidelines that Florida condos and condo conversions, and, in some cases, old condos, must meet before it will fund loans:
• At least 70 percent of the units in new condos must be pre-sold.
• No more than 10 percent of units can be owned by a single entity.
• No more than 15 percent of units in all condos can be more than 30 days past due on association fees.
• No more than 20 percent of a condo can be devoted to commercial use.
• All condos, new and old, must have fidelity insurance, which protects association funds from fraud.
• The seller is not allowed to help with down payments or offer other perks, like deductions of association fees, unless they are disclosed.
• Condos must have hazard insurance.
• When investors buy in established projects, at least 51 percent of units must be owner-occupied.
**If the condo you wish to purchase or refinance has any of these issue, it may still be possible to go FHA. Contact me with the address and I can check whether or not the project is approved by them...
