Florida Condo Loan Experts Since 1998. Call Toll Free: 1-866-215-9226
In general, Condo Loans are more complex than purchasing a single family or town-home. There is an additional component to the approval process that doesn’t exist in other transactions- The Condo must be approved by the lender.
Foundation Mortgage has been securing condo loans in Florida since 1998.
Contact one of our experienced, licensed Mortgage Brokers for assistance in determining the proper lender for your transaction and location.
Important Update: Condo Loans with NO Condo Approval Are Now Available For Primary Residences and Second Homes in Florida
Having trouble getting a loan because the Condo you are interested in is being denied by your lender? Foundation Mortgage offers Condo Loans on many Florida Condos projects that are not Fannie Mae approved and which other lenders consider unlendable. Areas such as Brickell, Brickell Key, Downtown Miami Condos, and other areas with a high density of Florida Condos are financeable. There are certain requirements:
- Primary Residence Transactions Require a 25% down payment for a Purchase/ 25% equity for a Refinance.
- 2nd Home Transactions Require a 30% down payment for a Purchase/30% equity for a Refinance.
This means no condo questionnaire, no review of the association budget and no approval of the project reserves. It may seem counter-intuitive, but no matter how strong you may be as a borrower, or what the down-payment/Loan-to-Value is; most lenders will not lend in Florida on condos if they fail even basic criteria of a condo questionnaire. Details such as pending litigation in the project, % of owner-occupancy, % of owners late on their HOA fees can kill your loan. It is very risky to attempt to secure financing with lenders that require approval of the Condominium. A result of the housing market crash is that most condo projects have some warts on them. The safe and best path to a smooth financing process is to work through one of the limited # of lenders that do not require approval of these items with the proper down-payment.
Miami Condos: Fannie Mae Special Designated Approval List Expanded to Include other Florida Condos. Primary Residence, Second Home, & Investment Property Financing available for Condos on this list up to 80% LTV!
Areas of downtown Miami and Miami Beach/South Beach were hit particularly hard when the housing market collapsed. Fannie Mae created a list of projects that it would allow lenders to Finance even though they would not meet the normal requirements. This list has now expanded to include other Florida Condos. Condominiums on this list do not require any project approval for your loan. You can finance Primary Residences, Second Homes and Investment Properties up to 80% Loan-To-Value (20% down-payment).
Foundation Mortgage is one of only a small handful of Lenders with Access to the Banks that offer these programs. Contact Us for more information!
What Questions to Ask When Purchasing Florida Condos?
- Is the project Fannie Mae or FHA Approved? If the answer is yes, then you may proceed as long as the Condo isn’t on the lender’s unlendable list (Yes, this is still possible even if a project is Fannie Mae approved). It is important to note that some phases within a Condo Project may be approved while others may not. This is a common mistake that can blow up many deals.
- Am I eligible for a Condo Project Review Waiver? (Also called a Limited Review) Primary Residence Transactions with a 25% down payment/equity. Second Homes Transactions with a 30% down payment/equity. Investment Properties are not eligible. Beware of lenders offering “Limited Review” of a condo but requiring a Condo Questionnaire. If a condo questionnaire is required, then it is not a limited review and you risk your loan being denied for factors not related to your individual credit worthiness. Check that your Condo is not on the lender’s list of denied projects. The Government Homeowner Assistance Program = HARP will allow you to refinance up to 125% of your home’s value if your Loan is owned by Fannie Mae or Freddie Mac. There is no project approval for these programs.
- Can I get an FHA Loan in a Florida Condo that is not FHA Approved? No. Currently FHA and lenders are not allowing spot reviews of condos for FHA Loans. You should check which Condos in the area you are interested in buying are already FHA approved if you are interested in a low down payment FHA loan.
- What is the minimum down-payment for a Condo Loan? For purchases, typically the minimum down payment is 20%. We encourage that you put more money down so that we can waive the project approval requirements. 25%- Owner Occupied. 30%- Second Home. If the project is FHA approved, you can purchase a primary residence with a 3.5% down-payment. For Refis, if the loan is eligible for HARP- Government Homeowner Assistance Programs- Then it is possible to get a condo home loan for up to 125% of the home’s value.
Authored By Scott Jones