Condominium Loans In Florida
The sunshine state has more condominiums than many other states combined. And since the 2006 to 2008 Great Recession and subsequent market slump, many lenders either stopped doing mortgages on condominiums located in Florida altogether because of the decline that was experienced in that element of the market or reduced the terms under which they would make a "condo" loan. Many that do offer condo financing have only been offering mortgages on those condo's that fell within the more restrictive Fannie Mae Limited Project review guidelines and it's abbreviated project documentation review guidelines (Bylaws and Budget are not reviewed). This limited review reduces eligible loan-to-value percentages (LTV, what you can finance against the value of the property) in Established Projects Only in Florida to:
Primary Residences to 75% LTV
Second Homes to 70% LTV
Investment Property is Not Permitted
For Established Projects not meeting the Limited Review criteria, because of a higher LTV request on your part, a Full Project Review of the Condo Bylaws, Budget, Insurance and Appraisal is required. For those lenders that are now accepting applications on a full project review the following LTV's would be expected to apply:
Primary Residences to 95% LTV
Second Homes to 90% LTV
Investor to 85% (50% Owner Occupancy in the project, primary or second home, is required)
The Limited vs. Full Condo review is a matter of a little more paperwork documentation to complete the approval process for the higher LTV you might need. Give us a call today for a more in-depth breakdown of program specifics. If you provide a contact persons name and number for the condo association or their management office we can determine what cost if any they may pass on to you to provide the required project data for lender review.
Call today with your condominium questions.