We work with a number of outstanding Tampa condo mortgage professionals. If you are curious to see whether loans are being approved for a particular condominium, give us a call.
The number of delinquent mortgages and/or mortgages in default secured by Florida condos is at an all time high currently according to Fannie Mae. So what does that mean for would be Tampa condo buyers? Well, in response to that fact, Fannie Mae has tightened up the standards for loan approvals for condos in Tampa (or anywhere else in Florida). This mainly applies to new condos or newly converted condos.
This is also bad news for sellers of these condos as well, as the pool of buyers who can qualify for these properties has dwindled. Many of the prospective buyers who may otherwise qualify for a loan, will be shut out because the property fails to qualify.
Basically, the downpayment requirements are now higher and the number of units that must be owner-occupied has risen as well. Standards on established condos are somewhat looser, but the fact is, buying or selling a condo in Florida just got a little harder.
Per Fannie Mae:
Requirements for Attached Condominium Projects in Florida:
“There are currently excessive unsold inventories of condominium project units in Florida
resulting from the increase in building new condominium projects and the conversion of
apartments to condominium ownership that occurred during the last several years. The
increase in the number of units available is one of the factors that caused home prices to
reach historical lows, particularly in the condominium market. As part of an ongoing
review of business activities, Fannie Mae assessed the performance of mortgage loans
secured by condominiums located in Florida and found that the number of loans currently
delinquent or in default is at an all time high. As a result, Fannie Mae is modifying some
of the terms under mortgage loans secured by attached units in condominium projects
located in Florida will be accepted.”
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