Heidi, if this will be a true investment property and not a second home, you will probably have to but down at least 25% and possibly 30% depending on bank or lender.

As a second home you only need 20% down and rates are much better than investment property loans, so like Casey says below, a second home occupancy will give you more flexibility.

If you have a property in mind, I would be glad to send you a GFE with estimated closing costs.

Andrew Kashella
727-331-8405
Akashella@TLTLoans.com

Hello Heidi,

The answer from the previous agent is a good one. Banks have really tightened up on all their requirements and are not inclined to be really generous with investment money at this point. Condos are having the biggest problem--because of the historical perspective of the last few years, condos are being looked at by banks as high risk and many banks won't touch them. If you would like more information on some good buys in Destin, Santa Rosa Beach, Navarre, Miramar Beach, I can certainly send you some information. Would you like foreclosure or short sale information? Just let me know and I would be happy to assist you.

Myke Triebold
850-305-6256
MykeSaysSold@aol.com http://www.DestinHomeRealtor.com

Just a couple of years ago, I could have easily helped you find 90% financing or perhaps even better. Times have changed and all of the rules have changed. Sometimes it seems like they really do not want lend money - some of them are sitting on bailout funds and not lending it out.

Having said that, you may want to approach this as a 2nd home. If you plan to use the property for your own vacations, the terms might be a bit more flexible. You can always change your plans later, but the loan is based on your original intentions.

The 20% down requirement you are running into has nothing to do with Florida. Instead, the national Fannie Mae, Freddie Mac, and FHA guidelines are driving this and the major lenders have to follow these rules if they have any intention of selling their loans.

Your options are slightly better if you are buying a house instead of a condo, but only slightly so unless it is a primary residence. Believe it or not, your small hometown local bank may be a great option. If a bank offers a portfolio loan (their money, they hold the loan), they can offer whatever terms they choose. We are seeing more of these types of loans right now.

Regardless of what you do, good luck. Prices are unbelievably attractive right now.

I will be glad to answer any questions or offer any assistance.