Florida condo rule shifts boost non-QM loan demand among buyers

Condominium rule changes implemented by Fannie Mae and Freddie Mac have caused a surge in non-qualified mortgage lending for condo properties across Florida. MPA Magazine reported that property buyers are increasingly relying on non-QM loans because conventional financing is no longer accessible for many units. [1]

Updated condo review standards for conventional mortgage products are leaving a growing number of Florida developments outside government-sponsored enterprise eligibility. According to MPA Magazine, buyers who assume they qualify for conventional financing often experience long delays before learning their targeted building fails agency standards. [1]

Jacy Bloom, owner and mortgage broker at Bloom Mortgage Solutions, told MPA Magazine that approval delays can carry severe financial costs. In one case cited by Bloom, a month-long processing delay resulted in a borrower losing a full percentage point on their interest rate. [1]

The financing hurdles arrive alongside broader real estate policy changes in the region. As FTMQ Real Estate reported earlier, proposed zoning updates in Miami's Little Havana neighborhood seek to permit up to 150 units per acre and eight-story structures, while Florida's Live Local Act underwent its third revision this year. [2]