FLORIDA ASSOCIATION OF MORTGAGE PROFESSIONALS (FAMP) PUSHES FOR GUIDELINE CHANGES – by Cindy Abraham, Keller Williams A Team Florida
Florida homebuyers are facing the same affordability challenges seen across the country, but condo buyers here are hit even harder, with stricter lending rules and costly new regulations on top of rising prices, taxes, insurance, and interest rates. The Florida Association of Mortgage Professionals (FAMP), meeting this week in Orlando, is pressing for changes that could make condo living more affordable and give condo owners a better chance to sell.
Right now, buyers of Florida condos often face a 25% down payment requirement if the building isn’t fully approved for financing. That’s far higher than the 3–10% required in most other states. These rules were put in place after the 2008 housing crisis, but FAMP says they no longer make sense, especially after Florida passed sweeping condo reform laws following the Surfside tragedy in 2021.
Those reforms now require milestone inspections and properly funded reserves to ensure buildings are safe and financially stable. Condo owners are already paying the price for these stricter rules, sometimes in the form of special assessments costing tens of thousands of dollars. With those guardrails in place, FAMP argues that Florida condos should not be singled out for tougher financing terms.
“This one guideline change from Fannie Mae and Freddie Mac could make a huge difference,” FAMP President Danny Diaz explained. “Sellers are stuck if their building isn’t fully approved, because the buyer must put 25% down. That’s not fair to condo owners, and it prices out many buyers who could otherwise afford the home.”
FAMP is joining forces with Florida Realtors and Miami Realtors to push federal regulators for change, noting that Florida faces hurricanes, but other states also face natural risks like earthquakes, fires, and tornadoes — yet they aren’t penalized with steeper down payment rules.
At the same time, FAMP is fighting to restore and expand the Hometown Heroes program, which provides down payment help for first responders, teachers, and healthcare workers who want to buy homes, including condos.
The bottom line: Florida condo buyers and owners are caught in the middle of affordability pressures and regulatory hurdles. FAMP’s advocacy is aimed at leveling the playing field so condos remain an affordable and viable option in Florida’s housing market.
