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Banks don't want to finance condos in FL

By wuaname   Follow   Fri, 18 May 2012, 6:33am   1,030 views   5 comments
In Miami FL 33178   Watch (1)   Share   Quote   Permalink   Like   Dislike  

Well, I went to my credit union last week to look into their loan programs for a condo purchase possibly later this year. They won't do condos, conventional nor FHA, even if FHA approved... Ok, no problem, let me go to my bank, Citibank.... "Sure, we'll finance your condo for you, with your score (good, very good) you would need 30% down payment... " WHAT!??!?! How about if I finance a single family home? "Oh, then your down payment would be 5%!!!!!!!!!!!

Obviously they don't want to finance condos, that's the first thing to go down in value and with all the foreclosure, people don't pay homeowner's and the properties go to shi)t...

But, if there's no financing available for condos, how the heck is that piece of the housing going to get better? Owners can't sell, so prices will keep going down, and even buyers with good credit and some cash can't buy...

Are mortgage brokers getting condos financed? I just went to the banks direct.

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1. zzyzzx Follow Befriend (9) 434 threads 4,247 comments Baltimore, MD

   1   6:38am Fri 18 May 2012   Share   Quote   Permalink   Like (1)   Dislike   It's not the banks obligation to finance condos, especially when they think that condos are going to go down in value

2. Repubthug Follow Befriend (1) 3 threads 43 comments

   2   6:57am Fri 18 May 2012   Share   Quote   Permalink   Like   Dislike   when I purchased a condo last year,went with Penfed for mortgage It clearly stated that they need atleast 25% down if its FL Condo..and that too if its primary residence.If its not primary residence,then forget the mortgage..they are not even looking at you thats how messed up Fl condo market is Its the sign of times and with the shitty job market and ever increasing assessments of HOA,i presume they are playing safe. I personally think its a good sign

3. FortWayne Follow Befriend (13) 106 threads 3,863 comments

   3   8:10am Fri 18 May 2012   Share   Quote   Permalink   Like   Dislike   If they think they'll lose money on the deal they won't refi. They don't owe you a refi.

4. E-man Follow Befriend (31) 34 threads 2,608 comments San Jose, CA Premium

   4   9:18am Fri 18 May 2012   Share   Quote   Permalink   Like   Dislike   Protected   Wu, Talk to a mortgage broker. Let him/her figure it out for you. Just give them the condo complex names & they will tell you what type of financing would qualify for. For the reason you mentioned above, condos, depend on where you are, are or were way undervalued. Investors came in and bought them all for pennies on the dollar. Some condos in the Bay Area have seen anywhere between 10%-30% appreciation in the last 12 months. They are selling for 15%-25% higher now at the courthouse steps compared to just 6 months ago. Once those properties are owned by investors, the HOA deliquency issue will go away. Some lenders will finance condo complexes that have less than 50% owner/tenant ratio, but the interest rate is about 0.5% higher, which is nothing. Also, getting the owner/tenant ratio over 50% is very easy, but that's another topic for another day. Not sure how cheap the condos are, but have you consider buying them all cash with your credit card(s)? I bought one recently with a 0% interest credit card as long as I pay the money back in 12 months. ;) If your area is still in distress, give it a good evaluation and move quick. By the time the coast is clear, it's typically too late. Good luck house or condo hunting.

5. Goran_K Follow Befriend (4) 26 threads 1,566 comments Laguna Beach, CA Premium

   5   9:37am Fri 18 May 2012   Share   Quote   Permalink   Like   Dislike   Protected   I wouldn't finance a condo either. Most of their HOAs are just as insolvent as the banks. The banks know a bum deal when they see one.