Fannie Mae eases funding rules for Florida condo projects

Fannie Mae, which had been restricting loans to buyers of condominiums in Florida, is now relaxing some of those standards. The mortgage finance company said today it is reviewing hundreds of condo projects that currently don't qualify for its loans and will allow more to become eligible. Buildings deemed "sufficiently stable" after the review will be given a special approval lasting up to 18 months. Lenders will be allowed to offer mortgages to homebuyers and sell those loans to Fannie Mae, which pools them into bonds and sells them to investors. Under regulations enacted in March, Fannie Mae has been rejecting any mortgage for a condo buyer if more than 15 percent of a development's other owners are delinquent on their association fees. What's more, Fannie Mae will guarantee mortgages only in new or newly converted condo developments if 70 percent of the units are sold or under contract.

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