Fannie Mae Approved Condo Buildings in Florida
June 6, 2009 by Lucas Lechuga
As of June 1, 2009, Fannie Mae updated their website to reflect the condo developments in Florida that are now approved for financing.
The following is a list of recent condo developments in South Florida that are now Fannie Mae approved:
- 50 Biscayne
- 500 Brickell East
- 500 Brickell West
- 900 Biscayne Bay
- Artech
- Brickell on the River South
- Vizcayne North
- Vizcayne South
- Icon Brickell Tower One
- Infinity at Brickell
- Jade Beach
- Quantum on the Bay
- The Ivy
- Trump Royale
View the full list of Fannie Mae approved condo developments in Florida.
The photos are looking stunning. What changed? Higher camera resolution or posting uncompressed pics? Nice!
LOL AJ, something tells me that Lucas didn’t take that picture of the Fannie Mae building.
Overall, this is good news for the market though. As more buildings join the ‘approved’ ranks I think we’ll certainly start seeing more activity. Now that prices are coming down to realistic levels, all that’s needed is more available credit.
So every one of these projects met the new Fanny Mae requirements?
1. Project Eligibility Requirements. The new Fannie Mae project eligibility
requirements for condominium projects include:
a. 70% Presale Requirement (Principal Residence or Second Home). Fannie
Mae is increasing the presale eligibility requirement for new condominiums
from 51% to 70%. Consequently, in order for a project to meet Fannie Mae
approval, at least 70% of the total units must have been conveyed or under a
bona fide contract for purchase for use as a principal residence or second
home. Developers seeking Fannie Mae eligibility and also looking to qualify
for an exemption from the Interstate Land Sales Full Disclosure Act (ILSA)
must be sure to plan carefully for the presale requirement, as contractual
provisions related to presale contingencies that are not drafted correctly
could render ineffective an otherwise valid ILSA-exempt contract.
b. Delinquent Association Dues. No more than 15% of the total units in a
project can be 30 days or more past due on the payment of association
assessments. This requirement is applicable to both new and established
condominium projects.
c. No Seller Incentives/Contributions. New condominiums will not be eligible
for Fannie Mae loans if the seller is offering seller financing structures in
excess of Fannie Mae’s policies or excessive contributions. Examples include
below market interest rates for financing, builder/developer concessions not
fully disclosed on the HUD-1 or payment abatements of association dues
and/or principal and interest.
d. More than 20% of Space Used for Non-Residential Purposes. Projects where more than 20% of the total space is used for non-residential purposes are ineligible for Fannie Mae loans.
e. More than 10% of Total Units Owned by Single Entity. If a single entity (the same individual, investor group, partnership or corporation) owns more than 10% of the total units in a project, the project will be ineligible for Fannie Mae loans.
f. “Walls-In” Insurance Coverage. Borrowers must purchase additional hazard insurance coverage,commonly known as an HO-6 policy (“walls-in coverage”) in addition to the association’s Master Insurance Policy. The insurance policy must provide coverage in an amount that is no less than 20% of the condominium unit’s appraised value, with a 5% deductible.
g. Budget Review. To meet the Fannie Mae eligibility requirements, the project’s budget must be “adequate.” While there are no specific guidelines to follow to determine a budget’s adequacy, the budget should allocate a portion of income (usually at least 10%) to replacement reserves and adequately fund insurance deductibles. However, this analysis will be made on a project-by-project basis.
h. Eligibility Waivers. Fannie Mae recognizes that each project has its own unique set of circumstances and Fannie Mae’s Project Standard team will review eligibility waiver requests on a case-by-case basis.
How can Icon be approved if they’re so, so far off from being 70% closed?
DJ, read h.
Regarding the pics, I was also referring tothe previous post with views from 50B. They look great.
I am still horrified by the devastation caused by one thunderstorm. Imagine a hurricane damage? Many of those cars could be total losses.
Guidelines give people false confidence that these buildings are stable. I don’t believe Fannie Mae knows how to check buildings records to detect fraud. It would take a forensic accountant trained in condominium law. Nonexistent job.
Heavy rain in South Beach and downtown Miami at or near high tide will result in massive flooding. Majority of vehicles will need new carpet and upholstery. Many will be totaled. Many basement garages flooded. If engines sucked water into the air intake they will need a new engine. Not a place for people with high end vehicles.
http://www.nbcmiami.com/news/local/Sewer-Water-Swamps-South-Beach.html
AJ,
My 8MP camera crapped out on me after I got back from my cruise. Earlier this week I got a 12.1MP Sony Cybershot. I’m glad to hear that you were able to see a difference. Great eye!
Actually, they are building an Asia de Cuba inside the new Publix in Mary Brickell Village. They are building a very walkable Wal-Mart where Pace Park currently stands. They will specialize in boating equipment. They are also building a walk and bike bridge from the Wal-Mart to Fisher Island. Major walkability projects are coming.
In non-walkability news, they’re building a San Fran style trolley with major stops at MIA international, Quantum, Asia de Cuba, and the Mondrian. It’s nice except it doesn’t involve walking. Darn!!!!
Correction superman IV, the trolley will be powered by people’s walking on a treadmill! So it is walking related. Tickets are going to cost a nickel. What a great deal, and some needed relief for the residents of Pace Park. This should double condo values by next week.
Recession’s over boys and girls. Go out and buy yourself a new Lambo and/or Chrysler Crossfire. Condo values can only go straight up from here. Should have got in while you still could renter tom and wild bill.
Joe’s Jeans and Superman IV don’t know the first thing about walking. I walked from DC to LA once. I grew a really long beard. I also owned a shrimp company down in New Orleans. It was called Asia de Cuba Shrimp Co. I am also the part owner of Publix, Inc. We are going to make the Mary Brickell Village Publix the flagship store. Golden cash registers and free lemonade for Brickell and Pace Park residents. Miami Beach people are going to be banned. You must show your license to get in. My son Orangello Jones is going to be the manager of the store.
::sheds tear::
Can someone confirm that this new Publix is going to be a Super Publix that is 260,000 square feet? It’s going to have multiple levels and sell everything from Crest toothpaste to Gucci handbags. No escalators either, just stairs so walking is mandatory. The stairs will be guilded with gold foil. Walking at it’s finest!
The Fannie Mae guidelines are very broad in nature. Most of the buildings above do not meet those guidelines but those buildings were able to apply for individual review and approval on a case-by-case basis.
This latest move by Fannie Mae smacks of desperation. What they are saying to you all is that – ” The current wave of South Florida Condo foreclosures and short sales is due to our lax and overly lenient guidelines in the past regarding fiscally sound lending practices in S.Florida condo buildings. Therefore we are strengthening our standards and our oversight with these new more prudent guidelines understanding that a substantial number of the newer buildings downtown cannot comply. Uuuum well golly gee -NEVERMIND. We now realize that each project has its own set of unique set of circumstances like no reserves, 60-70% renter to owner occupied ratios, high assoociation fees delinquent, inadequate insurance hazard and deductible coverage, and construction loans that are way overdue etc. We now realize that each project has its own unique set of circumstances so Fannies Project Standard (we know were fckd )Team will (wink wink) review all eligibility requests on a case by case basis becus if we dont we understand that we will never ever be able to put Humpty Dumpty back together again.”
Fannie Mae Approval=Big developer + Big Money
What you all dont think $$ has anything to do with it-How much did it cost dear old George to get his buildings approved-and what if you dont have the cash you dont get approval??
FYI to all the smart one here is actually Asia De Cuba as they passed on downtown 4 years ago, as they knew the area was all talk and no action-and 5 yrs later no action-oh sorry we now have a huge light up advertising board so the homeless can watch TV at night…Heck wallmart we already have Marshalls and Target talk about Midtown as the Rodeo I mean Compton of Miami….Build it and they will come-who will come thats my question???
newbe here..
looking for the computer program that allows an inside view into foreclosures, pre-foreclosure etc.. looking for condo’s on the beach.
thanks in advance.
cliff
Go to foreclosure.com, pay the $16 per month, and follow the records as they are filed.
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