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Friday, January 8, 2010

Fannie Mae to Ease Financing for Condos

From Realtor Magazine Online, Daily Real Estate News January 8, 2010

Fannie Mae announced Thursday that it will make exceptions to its tough condo-funding rules for some Florida condominium projects in an effort to stabilize this hard-hit market.

Fannie says it will reassess hundreds of Florida condo projects to see if they are “sufficiently stable” for buyers to qualify for loans, even if the projects don’t meet current requirements.

Rules that prevent government-backed financing include: requiring a building to be at least 51 percent owner-occupied, have a maximum 20 percent of nonresidential space, and hold a 10 percent reserve in its projects budget. Buildings that don’t meet these requirements can’t be Fannie Mae-approved so buyers won’t qualify for government financing, including FHA loans.

Source: Reuters News, Al Yoon (01/07/2010)

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