Treasure Coast Condo Buyers to See Down Payments Drop to 10% in August

A federal rule requiring Florida condominium buyers to put 25% down at closing — more than double the national standard — will expire in August, U.S. Rep. Byron Donalds, a Naples Republican, said after pressing the Trump administration to end the policy.

The change means Florida condo buyers will move to the same 10% down-payment threshold that applies in the rest of the country, with mortgage loans allowed to cover up to 90% of the purchase price. Under the current rule, in place since 2008, loans under the Fannie Mae and Freddie Mac Limited Review process could only cover 75% of a Florida condo purchase.

On the Treasure Coast, where condominium inventory lines the coast from Jensen Beach to Vero Beach, the practical effect is significant. A buyer purchasing a $350,000 condo currently must bring $87,500 to closing; under the new rule, that figure drops to $35,000 — a difference of $52,500.

Donalds said he pressed Housing and Urban Development Secretary Scott Turner on the policy at a House Financial Services Committee meeting in January and worked closely with Federal Housing Finance Agency Director Bill Pulte, a Boca Raton private equity firm founder, to change the regulation.

"For 17 years, this policy has only applied to Florida and has negatively impacted condominium owners throughout my state," Donalds said. "This is a major step forward for affordability in our state."

Sean Stafford, a lobbyist for the Florida Association of Mortgage Professionals, said the rule contributed to a statewide affordability crisis and argued its original rationale no longer applies. He pointed to stronger Florida building maintenance laws passed after the 2021 Champlain Towers South collapse in Surfside as evidence the state's condo market now operates under tighter oversight.

"It's a silly and outdated rule that just hasn't been revisited in a long time," Stafford said.

The new regulations are set to take effect in August. Buyers and real estate agents on the Treasure Coast should confirm specific loan eligibility requirements with lenders, as implementation details from Fannie Mae and Freddie Mac have not yet been publicly released.

This article was generated with AI assistance using publicly available information. It was reviewed and approved by a human editor before publication. TC Sentinel uses AI writing tools in accordance with FTC guidelines.