Friday, March 5, 2010

Have you gotten Special Approval Designation from Fannie Mae for your Condominium?

We all know that healthy condominium owners equal healthy condominium communities. We also know that many condominium owners are currently trapped in their units, unable to make their maintenance payments and unable to sell their units to new owners who could make those payments.

Nowhere is this vicious cycle more pronounced than in the State of Florida. More liquidity in the lending industry will help ease this cycle. Towards that end, Fannie Mae is implementing a new “Special Approval” designation for established condominiums in Florida which will allow lenders to deliver loans to individual owners in these communities.

Why should your community take the steps to go through this Special Approval process NOW? Making your community more appealing to lenders and potential purchasers will certainly help get healthy new owners in to alleviate the current burden being carried by owners paying for those who aren’t.

In order for Fannie Mae to begin the review process for your community, they will need the following:

•A copy of the most recent budget

•A copy of the most recent financial statements
•A copy of the association’s certificate of master insurance (and flood if applicable)

•A completed Condo Questionnaire (available on their website).

Once Fannie Mae has completed its initial research, it may require additional documentation and a site inspection. However, there are ZERO costs involved with this Special Approval Designation. For more information, please email special_projects@fanniemae.com or call 202-752-2916. To view a list of Florida condominium communities that have already received Special Approval Designation, please visit http://www.efanniemae.com/. This list is updated weekly as new communities obtain this designation. Once your community obtains Special Approval Designation, you will have that special classification for 9 to 18 months!

This is one more step you can take to be proactive in the health of your community.

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