Financing Sarasota Condos

Sarasota’s condo market may be getting better, and soon.  Recently Fannie Mae and Freddie Mac initiated new policies that will help condos and short-term rental properties especially.  Fannie Mae is aggressively adding new units to its approved lending list, including 35,000 units in the Miami area alone.  Thousands more from across Florida are expected to be added throughout the year.  Freddie Mac is now backing new mortgages in low occupancy and high association fee delinquency condo complexes.  These properties have been historically neglected as a result of Florida’s property market downturn.The two lending organizations have been limiting their lending practices out of fear of defaults on financially troubled condo complexes.  Many associations lost the ability to make repairs and pay for necessary maintenance as a result of investor defaults during property deflation.The goal of these new programs is to promote owner-occupants’ ability to buy and restore units, benefiting the troubled Florida condo market.  Fannie Mae has already begun sending an assessment team to provide special lending approval to many buildings and complexes that did not previously qualify.  This special approval is not completely free, as owners must provide proof that, in one way or another, they deserve to be deemed stable by the lending organization.  After approval, Fannie Mae can sell third-party mortgages to investors as bonds.  This special approval list stands at around 100 condominium buildings and growing, and the team hasn’t even gotten to Southwest Florida.Similarly, Freddie Mac is now backing mortgages on troubled condominium complexes as long as they already own or securitize the seller’s loan.  Financial backing from these congressionally created mortgage agents will undoubtedly increase interest in Sarasota’s condominium and short-term rental property markets.    Many market professionals believe that these new practices could create greater demand for condos in Southwest Florida.  The value of condos in certain parts of Florida has fallen by half since 2006.  Renewed interest could easily provide the boost that Florida’s property market has been lacking, or at the very least, promote the sale of undervalued condominium properties to the common buyer.

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