Some people believe the only thing more spectacular than buying a home on 30A is buying a condo on 30A – one that offers many perks that a home does not.
No grass to mow. Usually lower cost. A feeling of community with neighbors. On-site amenities in common areas.
Whether your favorite part of South Walton is WaterColor, Seagrove, Seacrest, Rosemary Beach, Seaside or Blue Mountain Beach, condominium living boasts many advantages over buying a single-family home. Of course, if you’re drawing up a list of pros and cons, there are also negatives to consider, such as having to pay homeowner association dues and assessments that can pop up unexpectedly to cover a development’s sudden needs, like exterior painting or a new pump for the pool.
It also can be harder to obtain financing for a condo than a stand-alone home. Guarantors impose tighter standards on condo loan borrowers that go beyond the applicant’s credit and income. They also want to make sure the condo development itself is on solid financial footing, which depends partly on the behavior of others living there.
But Walton Funding will help you cross financing difficulty off your condo buying “con” list. We have mastered four types of condominium loans:
- Conforming – Government agencies Freddie Mac and Fannie Mae back these loans because they meet a set of standards that include:
- Construction of the condo development is complete.
- The developer doesn’t own more than 10 percent of the units.
- Residents control the homeowners association.
- No manufactured homes in the complex.
- At least half of the units are owner-occupied, either as primary residences or second homes.
- Not more than 15 percent of residents are more than 60 days delinquent on their homeowner association assessments.
- The development may not be involved in any pending litigation, either as a plaintiff or defendant.
We will write these loans with a down payment as low as 5 percent.
- Warrantable Jumbo – These are condos that conform to Freddie Mac and Fannie Mae guidelines but are valued at more than $417,000. We require 20 percent down on warrantable jumbo condo loans.
- Non-warrantable – We realize that not all condos will meet the federal lending guidelines, but that doesn’t mean they aren’t solid investments. We grant many such loans, funding them ourselves and requiring 25 percent down.
- Condotel – Another type of condo that doesn’t meet federal lending guidelines, but we will still issue loans for, are condotels, or “condo hotels.” These are condo developments that investor agencies determine are operating effectively as hotels. These agencies have a long list of criteria that meet the condotel definition, including hotel/motels that have been converted to condos, projects that include registration services or allow rental by the day, projects that restrict the owner’s ability to occupy the unit, or developments with agreements obligating the owner to rent out the unit on a season, monthly, weekly or daily basis.
Walton Funding requires just 25 percent down payment on condotel loans.
Wherever it is you’re looking, whether it’s Destin, Miramar Beach, or the beaches of South Walton, let us handle your condo financing needs.