The Federal National Mortgage Association (FNMA), or “Fannie Mae”, is a federally-supported company that was originally chartered by Congress. It is intended to assist in mortgage securitization, which ensures that lending institutions have the funds to loan money to purchasers of homes or other residential units such as condominiums.
Recently in Ft. Lauderdale I’ve Heard of “Special Approval” Designation Loans. What are These and How Can they Help?
In the past it has been somewhat difficult to obtain a mortgage loan for a condo in Ft. Lauderdale under the Fannie Mae program. This was due to very strict eligibility requirements that were imposed on those seeking loan approvals. For example, many purchasers of condo units did not qualify unless they could make a full payment or a down payment of 20% or more.
Recently, in response to the hardships that the condominium market has been experiencing in the Ft. Lauderdale area, Fannie Mae created a “Special Approval” designation specifically for Florida condo loans. The strict requirements that were previously enforced are now being lifted for certain condominium units that qualify for the Special Approval designation. A team has been created to determine eligibility for loans under the new designation category.
Which Types of Condos will be Eligible for Special Approval?
The first criterion for eligibility under the Special Approval category is that the seller’s loan must already be securitized under the Fannie Mae program. While qualification for the new loans will be had on a case-by-case basis, the following criteria will be considered to determine if the requirements will be waived:
The financial stability and longevity of the particular condo project
The size and nature of the unit, such as the building’s age and its occupancy capacity
Any related costs and fees such as monthly homeowner association (HOA) dues and insurance premiums
The property’s current condition and habitability
A complete list of approved condominium projects is regularly maintained by Fannie Mae. Check to see if the condo you are interested in purchasing falls under the Special Approval designation.
Should I Hire an Attorney to Help me with my Ft. Lauderdale Condo Mortgage?
Ideally, the Special Approval program will help to stimulate the Ft. Lauderdale condo market as intended and encourage sales and purchases of property. However, the legal process is still going to be just as complex and detailed. Thus, you should consider contacting a lawyer who can help you, whether you are selling or purchasing a Ft. Lauderdale condo. Issues with condo loans and condo disputes are common and there are many lawyers in the Ft. Lauderdale area who specialize in such matters. They can also help you stay up to date in the ever-evolving market for condominiums.