Buy a Condo in Florida

    Over the last 5 years, there has been a real problem getting financing for condos in Florida.Many banks have scaled back what they will lend. Others stopped lending completely. Most banks now require 30% to purchase a condo. (Fannie Mae). FHA will still lend on a condo here and there (called a spot deal) but for the most part FHA allows us to lend on very few condos in Florida.

Fortunately I am happy to say that I now have a Fannie Mae lender that will lend 95% on a condominium in Florida. Let me say that again.

I can lend up to 95% on a condo in Florida!

The condo needs to be what is referred to as a warrantable condo which means the ownership has been passed to the Homeowners association for a few years, there has to be adequate reserves in the buget and the percentage of rentals cannot be too high in the community.

 For a better idea of warrantable condos please see below:

Warrantable Condo:

A condominium project with features that lenders view as favorable in terms of their risk exposure on loans secured by individual condo units. The requirements of warrantability include such features as the following: the project (including all common areas) is fully completed and the common areas are insured, the Homeowners Association has been controlled by unit owners (as opposed to the developer) for some period, most units are owner-occupied, and no one person owns more than 10% of the units. Loans on units in warrantable condos receive better terms than loans on units in non-warrantable condos.

Please give me a call to discuss your community: 561-329-0075

10 Questions to Ask Before Buying a Condo

Before you jump into buying a condo, there's 10 questions you should know the answer to:

1. How much are the monthly condo fees and what does it go towards?
2. What are the specific rules of the condominium?
3. How much is in capital reserves and how much gets funded every year?
4. Any contemplated or pending special assessments?
5. How is the association managed: professionally or self? I personally believe in purchasing in a community with professionally run management. Local "Condo Commandoes" sometimes overstep their authority or play favorites.
6. Is there any legal stuff happening that the condominium is part of?
7. How many of the units are lived in by their actual owners? If you have too many investors this makes your condo unwarrantable and creates a problem finding financing
8. What's the condominium fee delinquency rate? If too many people are not paying this will mean your homeowners dues may go up
9. Do you actually own certain common areas such as porches, decks, storage spaces and parking spaces, or are they use rights?
10. The master insurance policy, what does it cover?

Recently in 2011 the Florida legislature passed laws giving homeowners associations more power when it comes to dealing with deadbeat members. If a homeowner is not paying their dues but renting out their unit the association now has the right to collect the entire rent for that unit. (Not just the homeowners dues owed)