Special Approval Designation (SAD) Florida Condo Loans

Sometimes getting approved for a home loan or mortgage can be more of a challenge than one bargained for, especially in these trying financial times. Many people find that when it comes right down to it, they need a bit of a leg up or become ready to consider alternatives to traditional home ownership. For that reason, it’s fortunate that there are so many truly helpful loan assistance programs out there that can help.

Special Approval Designation Condo Loans (SAD for short) are a Florida specific type of loan launched by Fannie Mae. It was set in motion specifically with the intent to energize the Florida condo market by making it easier and simpler for would-be homeowners to cover the associated financing costs. Up until then, Florida residents experienced much difficulty obtaining financing for condos unless they happened to be on the HUD/FHA Condo Approved List.

A Closer Look at the Program

Fannie Mae is looking to use this new program to help take condos in Florida from a place where they’re virtually ineligible for financing due to issues with the market to a place where they are once again a viable option for individuals and families in Florida looking to make their dreams of owning a home come true.

Fannie Mae goes over hundreds of Floridian condominium projects with a fine-toothed comb in order to determine whether or not the condos in questions meet guidelines. Once they receive official Special Approval designation and are deemed eligible, they will be listed on the company’s website (eFannieMae.com). Eligibility for one of these properties means that lenders can grant mortgage loans attached to included properties to Fannie Mae.

The Advantages of Condo Ownership

This is great news for Florida residents, because choosing to finance a condo as opposed to a home comes along with many advantages.
Property owners get more for their money, since it doesn’t cost as much money to construct condos. This makes condos far and away more affordable for would-be homeowners than houses.

Costs of insurance and other similar services are often much lower thanks to the pooled purchase power associated with condominiums. Also, condo associations are responsible for insuring the building exteriors.

Condo owners save a bundle on the costs and effort of maintaining exteriors and landscaping, as this is all taken care of for them. This also makes them perfect for people who don’t have the time to landscape their own property or who simply don’t want to be bothered with the hassles of exterior maintenance.

Condos are often the best buys as far as location. If it’s important to you to live close to major city areas the biggest employers, then consideration of condo ownership over home ownership may be an excellent decision.

Overall, the Special Approval Designation program is improving the viability of the condo market in Florida to such an extent that condo life is becoming a terrific option for people who want to own a home, but can’t afford (or simply don’t want) the hassle of obtaining a mortgage on a traditional home.