If you're looking to buy an investment condo at a great price in Florida, you just might want to get your loan application nailed down and in before January 15th.
That's the day that Fannie Mae toughens its policies on condo properties in Florida. This could end the bottom fishing currently being done by investors and smart purchasers.
In letters sent to lenders before the Christmas, Fannie Mae indicated that declining market conditions in Florida forced it to require bigger minimum downpayments and more extensive underwriting reviews before funding new loans.
All loan applications for units in new and existing condo projects in Florida will go through an intensive review process by in-house underwriting teams to evaluate the building, its finances and local market conditions.
Lenders presumably will look to borrowers to pay the extra costs … and the additional time required for reviews could complicate some transactions. If you are interested in condos, make sure your financial house is in order or hurry to get in now before the tougher standards take place on the 15th!