Many are inquiring about condo financing in Florida. https://youtu.be/8c7YX5TH0ow
We had quite a few changes since the collapse of the building in surfside in 2021.
Fannie Mae and Freddie Mac requirements to have a condo approved for financing have changed in February 2022. The guidelines are more “picky” especially on older buildings unless they’ve had their 40 or 50 year inspections and all recommendations for maintenance have been completed.
For the condo-
Please send me the name and address of the condo project- we can check out list
Please find out the answers to these questions for the condo
(the current owner can call management company)
- Is the condo in litigations- if yes what type are they
it depends what kind of litigation they have. We have been in the past able to get Congress approved even with litigations. It involves some more questioning and getting documentation and it takes a little longer than regular condo approval.
- Do they have reserves? Request the budget & reserve reports
If a condo has reserves there is a good chance that you will be able to finance more than 75% loan to value. Most condos do not have the required reserves and therefore the minimum requirement for condo financing in Florida for a primary home is 25% down, 30% down for 2nd home, and 30% down for investment property
- Is there 1 entity that owns more than 10% of the project.
if one owner owns more than 10% of the unit in the building that’s practically a deal killer. For example if the building has 100 units if one entity owns 11 units the building is deemed not financeable for conventional financing. There might be other options that we can discuss in person.
Let Racheli Home Team guide you through the process of buying a condo in Florida.
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