Mortgage giant, Freddie Mac announced on Wednesday that they will now be backing mortgages on units in condominium developments as long as the mortgage is already owned or backed by the finance company. After tightening their lending standards for condos last year by reducing their financing for buyers in distressed buildings, many condos have had a difficult time selling units.

Although this change will only be in effect for a year, the changes will include financing options for distressed condominiums. Created in an effort to increase the financing availability for the condominium market in Florida, which was hit hard by the real estate crisis, this change in policy will make it easier for developers to sell units.  

According to Jack McCabe, president of  McCabe Research & Consulting, “Without a doubt, the condo developers that already have Freddie Mac loans in their buildings will be dancing a jig tonight because its the best news they can get."