What can I expect right now regarding financing a second home purchase in the Panhandle? Would be looking for a 30 year fixed loan.?

Asked by Doug, Cincinnati, OH Thu Feb 9, 2012

I am curious about what banks are allowing right now. The home would be used as vacation rental property. Is there a minimum percentage down they are requiring for second home purchases given the housing market right now? Does PMI still kick in at 20% or less? Would be financing somewhere between $200k and $250k. Credit score is 750 .

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Kelly Klein, Agent, Santa Rosa Beach, FL
Fri Feb 10, 2012
The minimum down payment requirement with Waterstone Mortgage is 10%. The loan would have mortgage insurance paid monthly (or could be done as a single premium paid at closing; your choice). The rates are dependent on your exact credit score but are running in the 4% range for a 750 credit score for a 30 year fixed with no points.

Waterstone Mortgage -- Sue Botelho at 850-362-6901
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Robert Russ, Agent, Panama City Beach, FL
Fri Feb 10, 2012
Hi Doug, I answered your other question as well. For Gulf Front condos, the financing can be tricky as others have mentions. The terms "Condo Hotel" or "CondoTel" describe certain types of buildings in Panama City Beach. Fannie Mae and Freddie Mac guidelines are strict when it comes to these types of properties. However, there are some good programs out there. I recommend you speak to Collin Atchison with First Florida Financial
Office: 239-206-1115 .

Call me or shoot me an email and I'll send you his rate sheet.

P.S. Some friends of mine own a pizza place in Loveland, OH called "The Works" ever heard of it?

My Best,
Opey Russ
Broker Associate
Beachy Beach Real Estate
Licensed Real Estate Instructor
Florida Real Estate Academy
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Gregorio Den…, , San Diego, CA
Thu Feb 9, 2012
What you describe is not a second home, it's an investment property and requires a minimum of 20% down unless it's a HomePath property. PMI is not relevant because 20% down is required.
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Ronnie Bramer, Agent, Fort Thomas, KY
Thu Feb 9, 2012
The max ltv for a 2nd home would be 90% ltv. Yes, you are correct if you put less than 20% down you would have PMI. My wife Ellen is a Loan Officer with FBC Home Loans with over 22 years experience. We are both from Louisville and I know a lot of people from this area go to the Panhandle since it is the quickest point to Fla driivng. Also what ever you buy make sure you factor in certain market adjustments . You can email me ronnie@1change.com for details.
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Tom Lewis, Agent, Orlando, FL
Thu Feb 9, 2012

I answered your other question and wanted to get to you on this one too. Most banks, the few lenders that are still doing condos, are typically requiring 20% down and rates range from 4-5.5%. However, most lenders are only willing to do Adjustable Rate Mortgages. I'm willing to work very hard with you every step of the way to get your investment up and running.

Tom Lewis
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