E-mail of the day:
“Jason and I have decided against a condo …we are strictly going to be looking at houses in Tampa now!”
This has become a typical move once many would-be Florida condo buyers speak with a Realtor or speak with a lender. The recent change in Fannie Mae lending guidelines have made it all but impossible to get on loan to purchase a condo in many condominium projects. And that in turn makes it all but impossible to sell the same. Condo projects in which 10% or more of the units are owned by one entity do not qualify per Fannie guidelines. Same said for projects in which 15% or more of the association members are 30 days or more delinquent on fees. You can put many of the recent Tampa condo conversions into one or both of these groups.
This, in effect, will rule out all but cash buyers who will begin (continue) to pluck up the inventory in bulk deals I’m sure. Many of these projects have already returned to rentals in one form or another, and many others will continue to do so. Values will continue to deteriorate.
So condo buyers beware. Only the most established condominium buildings whose associations are in good financial health, will qualify for loans. Do your homework upfront and don’t waste time chasing something that won’t qualify for a loan.
Some related Tampa condo posts:
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