Fannie Mae and Freddie Mac consider “resort condos” to be ones that they won’t lend on for a variety of reasons. If they can google the name of the project and the city and find that a unit within the project can be rented short term, they are not financing in that project. If there is an on-site rental desk, concierge or maid services in a project, they are not financing on that project. It almost seems as if they have thrown a dart and it landed on the Panhandle and they said, “Let’s just not finance ANY condos there anymore and call them all condotels”. While it has become more difficult to finance our local condos and the programs we can offer are 3, 5 or 10 year ARMs or 10 or 15 year fixed rate mortgages only, it has not become impossible. In fact, there is a way to get 100% financing on most of the projects here with a co-collateralized loan.
Here is the 100% info - Co-collateralization is using “lendable equity” in another as part of the “downpayment” on a different property. This additional property can be located anywhere in the US for the most part – it does not have to be here in Florida. Lendable equity is defined as “the value of a property times 70% less the total of any mortgages/equity lines currently on that property”. For example: if someone owns a primary home property worth $400,000 and they owe $200,000 on it, the lendable equity would be $80,000 ($400,000 x 70% = $280,000 less $200,000 current mortgage = $80,000). This $80,000 could then be applied to the downpayment. So if they were buying a condo for $320,000, they could use this $80,000 of equity and actually finance the full $320,000, thus resulting in 100% financing. If this same person owed nothing on this house, and they were buying a condo for up to $280,000, they could get 100% financing by putting a first on the condo and a soft second on the other property. We have done this type of financing a lot and it works whether your client is buying a condo, a house, or a townhome. It is a way to get up to 100% financing by using additional property owned. We have even done it with as many as 5 other properties on it. It is a blanket mortgage whereby they have one loan, one payment and multiple properties on the mortgage.
Call Sue to start you application for financing, please mention my name,
