Florida Condo Mortgage Loans – Refinance Florida Condo Mortgage
Our Florida mortgage lenders for condos, both warrantable and non-warrantable, or a coop, or even a condotel, can be an attractive option. Now you can cash out and refinance your Florida condo listed for sale on the MLS. And, for those who feel “priced out” of the single-family market, some condos offer a more affordable homeownership option.
Florida Non-Warrantable Condo Lenders
Condo Mortgage Qualifying:
1. The borrower must be approved by verifying Cash, Credit, and Capacity.
2. The condo must also be approved by the lender, reviewing 1. Completed questionnaire. 2. The condo budget.
Often, condo questionnaires and budgets are not completed correctly by the association and require clarification by the lender and or underwrite,r which slows down the condo approval process.
Condo Mortgage Options Include:
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- 0% Down VA-approved Florida Condos reserved for Veterans with a certificate of eligibility.
- 3% Down HomeReady – Home Possible reserved for First Time Home Buyers.
- 3.5% Down on FHA Mortgage reserved for only Florida FHA-approved condos.
- 5% Down Payment for Florida primary condo homebuyers with full review.
- 10% Down 75% First 15% 2nd Helock For Limited Review Condos.
- 10% Down on Second Home Condo Loans.
- 10% Down on Jumbo Condo Loans.
- 15% Down on an Investment Property Condo Loan.
- 10 to 25% Down for Florida Non-warrantable Condos
Florida mortgage lenders offer various options for obtaining condo loans. These include conventional, FHA, VA, non-QM, jumbo, private money, or hard money loans. Conventional loans are the most popular and may require down payments as low as 3-5%. In the Florida Condo Market, most people have to put down larger down payments to meet the lender’s Florida condo mortgage requirements.
Basic Guidelines For Condo Approval:
- The project must have at least five single units.
- At least 50 percent of the units must be occupied by owners.
- No single owner or entity can own more than ten percent of units.
- Association dues cannot be delinquent by more than 15 percent.
- Borrowers with less than 25 percent down must pay .75 percent of the loan at closing or accept a mortgage rate that is .25 percent higher.
- All association construction must be completed if the development is more than one year old.
Florida Mortgage lenders will examine the associations finances and will deny mortgage application for units where the associations financials are questionable or there are lawsuits pending.
Why Are Condo Mortgage Rates Higher?
Florida Condo mortgage rates tend to be higher than those for single-family homes due to the perceived risk for Florida mortgage lenders. There is an added cost depending on how much equity you have. If you have less than 25 percent equity and less than perfect credit there could be added interest rate costs for condominium mortgage rates.
If you call around shopping for a lower rate most brokers will tell you that condominium rates are just higher, take it or leave it. If you’re getting a Fannie Mae condominium mortgage loan you’ll take a hit of .75 percent for any mortgage loan over 75 percent loan to value (LTV). If you are putting less than 25 percent cash down on your home purchase you can expect to pay a higher mortgage interest rate.
Qualifying for a Florida Condominium Mortgage Loan
As it is with any home mortgage loan, getting a loan for your condo purchase requires sufficient credit and steady income from employment or other sources. You will also be required to make a down payment in most cases which ranges from 5 to 35 percent depending on the type of loan you are getting.
Florida condominium mortgage loans typically have more stringent loan-to-value (LTV) requirements than single-family homes. The condo loan-to-value is the ratio of how much your condo is worth compared to how much you owe. If you make a 25% down payment, your loan-to-value ratio would be 75%.
Your Condo Homeowner Association Matters
One of the biggest obstacles to getting a mortgage for a condo investment is finding an approved condo development. This is especially true for getting a Florida condo mortgage.
What makes Florida condo home loans so difficult for many borrowers is that, in addition to qualifying based on your income and credit history, the condo homeowner association must qualify to get your loan approved. Florida mortgage lenders are required to follow condominium guidelines set by Fannie Mae, Freddie Mac, and the FHA before they can approve your condo for a mortgage loan.
Condominium Mortgage Terms
Term length is the amount of time you have to repay your Florida condominium mortgage loan. The choices for term lengths are typically 15 or 30 years.
If your goal is to have the lowest monthly payment possible choose a 30-year term length for your Flroida condominium mortgages. If your goal is to build equity quickly then a 15-year condo mortgage will result in a higher monthly payment; however, you will build ownership in your condo at a much faster rate than a 30-year mortgage.
As is the case with single-family homes, you will have the option of choosing a fixed or adjustable interest rate. You can even choose an interest-only loan if you need the lowest possible payment for the interest-only period of your repayment.
Buying a Florida condo can be a very frustrating experience for the uninitiated because loan approval is not solely dependent on your credit history and income. Your realtor, mortgage broker, and Florida homeowners’ association all have resources available to help you get to the finish line.
As with any home purchase, doing your homework on the development, home owners association, mortgage rates and fees can save you time and frustration on your next condo purchase.
