Investment and Vacation Real Estate - Orlando, Florida

Florida condominium loans could be easier to get under a program announced Thursday by government-run mortgage company Fannie Mae.

The company has named a team of six employees to review hundreds of condo projects statewide that may not meet Fannie Mae's eligibility criteria for financing because of occupancy problems or high delinquency rates on homeowner association dues.

Developments deemed to be stable after the closer look will receive special designations, meaning lenders could deliver mortgage loans in these projects to Fannie Mae.

Chappy Adams, president of Illustrated Properties in Palm Beach County, said many condo buyers today have to pay cash because they can't get mortgages.

"This is definitely going to increase demand for condominiums," he said.

Fannie Mae already has issued the designations for 50 projects, all in Miami-Dade County.

More are expected in Palm Beach and Broward counties in the coming weeks.

Fannie Mae and associated company Freddie Mac buy about half of the nation's mortgages from lenders and sell them in bulk to investors. Lenders are reluctant to provide financing, particularly in Florida, if they know they won't be able to sell the mortgages to Fannie or Freddie.

The new program is meant to help Florida's distressed condos as Fannie Mae continues to provide liquidity to the broader housing market, Karen Pallotta, an executive vice president, said in a statement.

"The state's condo market has been particularly hard hit by the housing downturn and we're working with the industry and our partners to do all we can to stabilize the market and help spur recovery," she said. complete story

Source: Sun-Sentinel.com - Paul Owens