Mortgage rates have remained at record lows and many are taking advantage of this and purchasing condominiums in South Florida. When you are looking to do this, it is important to note the health of the building. Even with perfect credit, if a building is not fiscally secure, the lender will not approve financing. When you are looking to buy a condominium, it is therefore important to look at the building’s fiscal record. Some of the items to consider are, how many of the residences are rentals, how many of the units in the condo are sold, and how many of the neighbors are behind on the maintenance. When you are applying for a luxury condo loan, here are some points to consider.
Downpayments: If you are getting a private mortgage, borrowoers need to have 20-30% down payment for a primary residence. For a second home, they require 40% down. Cash is really the best option for this reason.
Building Style: Buildings that are middle to large in size with mostly owners occupying them, are more likely to be approved for mortgages. Higher levels of rentals in a building have the opposite effect.
Timing: Before you begin your condo search, contact the prospective lender and find out the criteria the building needs to meet, and then give this information to your realtor to narrow your search.
Costs: Borrowers are leary of the adjustable rate mortgage since low rates now, could rise in the next few years, meaning mortgage payments would rise and condo dues would rise. Make sure the building has reserves.
