Federal rules alter balance of buying power

Some of the most affordable properties in South Florida are out of reach under federal loan rules that require steeper down payments. Credit regulations now require many buyers to come up with 40 percent deposits unless a property meets criteria from the Federal Housing Administration or Fannie Mae, the government-sponsored corporation that buys or backs mortgages. Because so many foreclosed properties were bought by speculators who wanted to flip them, the criteria are that 70 percent of a new project’s units be pre-sold and that no more than 49 percent be owned by investors.