Freddie Mac Announces Effort to Increase Mortgage Finance for Condos in Florida

 NAHB - Economics and Finance Update


Freddie Mac Announces Effort to Increase Mortgage Finance for Condos in Florida

In an effort to increase the availability of financing for Florida’s beleaguered condominium market, which has been among the hardest hit by the current housing downturn, Freddie Mac on March 31 announced that it was waiving some of its requirements and warranties for backing mortgages on the state’s condo units.
The new initiative will make it much easier to process purchase transactions of condo units and will benefit individuals such as owners, buyers, real estate agents and lenders. The streamlining effort will make it possible to obtain Freddie Mac backing in buildings that previously did not meet vacancy-level and other origination and underwriting requirements.
The existing first lien conventional mortgage on the unit being purchased must be owned or have been securitized by Freddie Mac.
The date of the mortgage on the unit being purchased can be no later than Dec. 31, 2009 and the settlement date for the new mortgage must be on or before March 31, 2011.
Freddie Mac also announced that it will not accept Fannie Mae’s special approval designation for establish condominium projects in Florida.
To read the announcement in Freddie Mac Bulletin 2010-8, click here.
For more information, e-mail Stephen Linville at NAHB, or call him at 800-368-5242 x8597.