CONDO LOANS TO FIT ANY BUYER

Financing a condominium purchase is often more complex than that of a single-family home. Lenders have become especially protective of condominium loans in recent years, for a variety of reasons, including issues that sometimes arise due to housing association regulations.

Thankfully, the condominium market in Florida has rebounded nicely since the housing crisis of 2009, and condominium financing is attainable provided the buyer and the unit itself measure up to a –sometimes-stringent set of requirements.

Deal777 offers programs that feature conventional, FHA and VA loans. Guidelines for each loan type vary greatly, so consult with a Deal777 loan consultant for information to identify the program that’s best-suited for you. The approval process requires standard information such as employment, income and asset records, but there are differences as well. For example, when calculating a borrower’s debt-to-income ratio, any condominium homeowner’s association fees must be added to other typical expenses. Often, a higher down payment is also required.

With condominium purchases, there other considerations to keep in mind as well. If an investor – someone other than the developer – owns more than 10 percent of the units in a complex, the condominium is not eligible for financing. And other factors such as the amount of delinquent assessments, the number of units that have been sold, and the operating budget of the complex can influence whether a condominium qualifies for financing in Florida.

Additionally, every loan type has its own stipulations regarding the ratio of renters-to-owners, as well as the amount of cash reserves required to receive approval. Condominium homeowner’s associations must provide proof of a master insurance policy with liability coverage for common areas and amenities considered part of the general condominium community. In addition, individual condominium owners, are required to carry separate insurance policies for the unit interior and any contents therein.

 If you are considering purchasing a condominium in Florida, either for a primary residence, vacation home or investment property, contact Deal777 to help make the process as seamless as possible. Our knowledgeable staff can help determine the loan type best for you – whether Fannie Mae, Freddie Mac, FHA or VA. Upon determining the loan type, you will have a clearer scope of the properties that are eligible for consideration.