Home Buying in 33764>Question Details

Jennifer, Renter in Clearwater, FL

Is it still difficult to obtain financing for condos in Tampa Bay, especially short sales?

Asked by Jennifer, Clearwater, FL Sun Sep 16, 2012

Help the community by answering this question:


Hi Jennifer,

It depends on the community, their condo rules and the investor ratios or default levels. If a condo community has a high rate of investor owned or default properties, then most lenders will not lend. If a condo community has an interview approval process or a first right of refusal clause in their documents (this is a clause where a current owner in the community has the first right of refusal on a sale to anyone out side the community), then FHA lending won't get approved. FHA approvals on many approved communities have expired. Some lenders will do loans without FHA approval, but they usually require 25-35% down. Being a short sale or not, isn't the determining factor. "Short Sale" problems with closing is a whole other story. I hope this helps. I feel an informed client makes the best decisions regarding their real estate needs. Let me know if I can be of assistance.


Pam Cohn
Broker Associate, GRI, SFR, NHS
Real Estate Consulting, Marketing & Sales
Prudential Tropical Realty
2539 Countryside Blvd #3 Clearwater, FL 33761
727-204-7155 http://www.FromCavesToCastles.com
TEXT "PAMELA" TO 727-213-5142
1 vote Thank Flag Link Sun Sep 16, 2012
Hello Jennifer--a great question!
I gave Pam a "thumbs up", because she correctly identified a couple of the specific challenges in financing a condo purchase--ones that I know only too well from a recent experience with a buyer.

My client, the mom of a friend, has decided after ten plus years of happily renting, that it is time to find her retirement space. Two challenges came up immediately: One, finding a water view in her price range, and Two, finding a lender who would loan on a condo purchase.

We found the 'perfect' place, it passed inspections, and the lender she had chosen sent the (in this case credit union) condo questionnaire to the association. The results came back negative--turns out after asking several other banks and credit unions: no one would loan on this property, because of high defaults (past, not current--this affects the associations' escrows, due to uncollected dues), and because the percentage of owner-occupied units was right on the border--her purchase would have put it right about 50%.

Moral of the story? Do a little research before you even take a look at the unit in person--a little prior reseach pays off. one of the ways which I have devised to 'pre-screen' the association, if I'm not already familiar with them, is to look at the past 12 months' sales--if there are units which sold and were mortgaged, we know that the association passed some lender's 'test'! Your buyer's agent can do this for you as well.

Hope this helps!
If you have questions about any purchase in the Palm Harbor, Tarpon Springs, or Dunedin market, please don't hesitate to give me a call at 727-656-6206, or email: HelpSaveHomes@gmail.com

Your 'Real' Estate Consultant for Life!
0 votes Thank Flag Link Mon Sep 17, 2012
As Pam correctly pointed out, there are many conditions that must be met that is beyond the buyer or seller ability to control.

You will need to evaluate on a case by case basis.
Short Sale status is not in the top ten regarding creating difficulty financing a condo.
Many lenders and brokers will not consider lending on condos bleow a specific price point. Use a local, Pineallas County lender or broker.

If you are serious about a purchase, give me a call.
No, don't use that 'contact' link.
No, don't use Trulia email.
You will need to go old school and pick up the phone.

Best of Success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
0 votes Thank Flag Link Mon Sep 17, 2012
See programs #6 below for Condo Purchases in South FL.

1) 100% LTV- VA /Debt Payoff on Purchases too
2) 100% LTV- USDA/12 mo. into Chapter 13 BK…OK!
3) 99% LTV- FHA

4) 97% LTV- No PMI and No FHA MIP FEE of 1.75%
5) 95% LTV- No PMI
6) 95% LTV- CONDO
7) 90% LTV- No PMI 2nd Home
8) 90% LTV- JUMBO w/cc
9) 85% LTV- No PMI to Super Jumbo
10) 80% LTV- Invest./Rental

STATED INCOME ALT loan programs to Super Jumbo http://www.statedincomealt.com
11) 80% LTV- FIX n’ FLIP Invest. Prop.
12) 80% LTV- NEW- Stated Income Alt
13) 75% LTV- NEW- Foreign Nationals- Stated Income Alt
14) 75% CLTV-NEW- after Short Sale, BK or Foreclosure
15) 70% LTV- Soft and Hard Money -Stated Income Alt

17) COMMERCIAL PROGRAMS-programs available nationwide

Steve McRory
Pro Option Mortgage/ Florida
Ph: 888 662 4404

Prior Service U.S. Marine Corps
0 votes Thank Flag Link Mon Sep 17, 2012
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