Florida is facing a significant affordability challenge, with rising home prices, difficulty in obtaining insurance, high interest rates, and soaring property taxes,” Diaz emphasized. “To address this issue, a guideline change from Fannie Mae and Freddie Mac could make a substantial difference in affordability, particularly for condo owners looking to sell their properties but are unable to due to qualification restrictions.”
Following the 2008 financial crisis, strict down payment guidelines were imposed on Florida condos by the GSEs. Currently, buyers in Florida must put down 25% for a condo under a limited review, compared to as little as 3-5% in other parts of the country. Diaz argued that these requirements no longer make sense post the condo reform laws enacted after the Champlain South Tower collapse in 2021, which mandated milestone inspections and funding reserves for repairs.
While these new regulations enhance condo safety, Diaz believes that the 25% downpayment requirement should be aligned with other states. FAMP, along with Florida Realtors and Miami Realtors associations, is advocating for this change and has found support from Rep. Byron Donalds and the FHFA.
Additionally, FAMP is working to ensure that first responders, healthcare workers, and teachers have the opportunity to afford homes in Florida. They successfully advocated for the Hometown Heroes down payment assistance program and are pushing to increase its funding to further support these essential workers.
Improving affordability is at the core of FAMP’s advocacy efforts, aiming to enhance the Florida housing market and provide consumers with better options.