Buying in Santa Rosa - question

Asked by Tevs, Santa Rosa Beach, FL Sat Jul 7, 2012

We would really interested in purchasing a condo or town home in Santa Rosa Beach. We are specific to the area where Beachwood Villas is. However, my concern is about financing. Are there no other options to get good financing rates without having to put down (25% on condo or 20% on a house) so much money?

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Texlaw57’s answer
Texlaw57, Home Owner, Texas
Fri Jul 27, 2012
We bought a condo in SR last fall. Lady named Kim at PrimeLending was incredibly everything cleared and thru in record time...and with as little aggravation as possible. They did us well. Suggest strongly you use local people exclusively, my mistake was in trying to use Wells Fargo (which had recently purchased my bank)...they agreed cheerfully and then backed out...and within twenty days...we were covered. I was impressed. Unfortunately... yes. the downpayments are steep.
0 votes
Tevs, Home Buyer, Santa Rosa Beach, FL
Thu Jul 26, 2012
Hi Peter,
After speaking with approximately 20 difference Florida banks, I have basically found almost all of them are telling me this.

Mostly everyone is requiring 25-30% (mostly 30% down is required rather than 25%) down but still offering adjustable rate mortgages even with this large percentage down. The ARM would be a 3/1 or 5/1 and I even found one bank that will do a 10/1. The one bank that will do a 10/1 (30% down) ARM also offered a fixed rate 30 year mortgage (30% down as well) but your income had to be at least $250k/year OR you must have $500k in investable assets to qualify for this Private Banking Portfolio Loan.

I have found 2 - 3 within those 20 banks that will do a fixed rate 30 year mortgage BUT they are still requiring the 30% down. Of course that's the better option but our problem is coming up with the 30% down. One of those banks out of these 2-3 banks did check the condo project I am interested in buying the unit in and I was told that project was on the "limited" approval list which means it did qualify for a fixed rate loan but again, the 30% down. The person I spoke to said he would check to see why it was not on the "full" approval list. If it were on the "full approval" list, then the property would have qualified for 20% down and 30 year fixed (I would imagine the other 2 banks would work this way as well as far as an approval list but I'm not sure). This last conversation was yesterday afternoon and I have not heard back from him as of yet.

AND lastly, I found only one bank that will allow 20% but is only offering 5/1 or 3/1 ARM's.

That is our dilemma, try to save another 10% towards the down payment (we only have 20% right now) to try and get a fixed rate loan or do a 5/1 ARM (with interest rates at a cap at the incremental rate increases) with the bank accepting 20% down and hope we can refinance before the first 5 years is up.

We tried two other options. Our home (husband and I) is in my name. He has never owned a home and we thought we could purchase the condo under FHA but because this Florida condo will not be his primary residence, we can't do FHA.

Also looked into Homepath and because we are very specific as to where we want to purchase at in Seagrove (the project/condo), we were only looking for that project on the approved Homepath list or anything very close to it (walking distance) and could not find anything on their approved list.

I hope this gives you some good information as to what seems to be available as far as financing on a second home (this information is for condo purchases). By the way, many of the banks look at home or town home purchases differently and many of them that I spoke to did tell me 20-25% down and fxied mortgages are available for a home or town home. So if you are looking for a home or town home I think you won't run into this condo problem as much.

If you or anyone else finds any other options available that I have not found above, an email or post would be greatly appreciated.

0 votes
It sounds like you did your homework. There are some local banks that will lend on certain projects with a more traditional down payment, when the project is fully approved. A few banks are offering portfolio loans on certain complexes as well. It can be pretty difficult to work through the "system". Prime Lending has an approved list. If you are working with an agent, they can assist in helping you get to the most knowledgeable in the business.
Flag Thu Aug 2, 2012
Peter Mohyls…, Agent, Destin, FL
Thu Jul 26, 2012
I have read a lot of very good, accurate guidence on your question. Were you able to find a person to give you current information? I would be interested in learning what you had decided.

0 votes
Tevs, Home Buyer, Santa Rosa Beach, FL
Sun Jul 8, 2012
I thought of another option. I was asked on here on whether or not this could qualify for an FHA loan and I said no because this would be a second property for my husband and I. BUT I did not think about the fact that his name is not on this mortgage (I bought the home before I met him) and he has only one credit card that is both in his name and mine (with like a $2000 balance that we try and pay off monthly). He has no other debt in his name. I believe his credit score was pretty good but not sure if the credit has been established enough (he's only been in the states about 3.5 years, moved here from Germany).
Question is, could he qualify for a FHA loan on a condo, thus having to only put down 3%? He does not have a high salary so I'm not sure what he would qualify for but given that his score is good and he has pretty much no debt in his name, I thought there may be a chance.
0 votes
Kelly Klein, Agent, Santa Rosa Beach, FL
Sun Jul 8, 2012
When it comes to financing, speaking directly to an expert can be very beneficial. is a good place to start. Debbie can explain the different financing options that are available. When it comes to buying, working with an Exclusive Buyer's Representative is highly recommended. Having a buyer agent represent your best interests during the negotiation process doesn't cost you anything, and it will save you time, money and energy. So what's not to like? I hope to hear from you when the time is right.
Kelly Klein
Lifeguard Real Estate, Inc.
0 votes
Murray Balkc…, Agent, Santa Rosa Beach, FL
Sat Jul 7, 2012
Tevs, for condos, you are right, at least for the moment. Expect to put down 30%. Town homes will be different, typically with less down payment. Another option is to find one with seller financing, but those can be difficult to find.
Web Reference:
0 votes
Lisa Snuggs, Agent, Destin, FL
Sat Jul 7, 2012
There is no short answer for your question. May I suggest you contact Dawn Hoffman at Beach Community Mortgage, she would need more information from you IE: what type of occupancy? rental property? 2nd Home? She can be reached at 850-678-3129 Monday - Friday.
Good luck, and when your ready to hire a Realtor, call me: Lisa Snuggs @ 850-830-2331
0 votes
Myke Atwater, Agent, Santa Rosa Beach, FL
Sat Jul 7, 2012
Hello Tevs, your question would more accurately be answered by a lending officer. You will probably have better luck if you stay away from condos, because of the past difficulties that came out of the condo boom from 2004-5. I have three lending officers that I work with often who I could highly recommend, and they would be able to accurately assess what programs they would have that might benefit you.

If you would like their information, please let me know.
Myke Triebold GRI,LMC,SFR,ABR
0 votes
Shay Dassa, , Santa Rosa Beach, FL
Sat Jul 7, 2012
Tevs, great question.

While lending has loosened over the past 12 months for second homes, lenders are still cautious about their loan prospects. Several years ago the only way to obtain a loan on a second home was through a 3/1 or 5/1 ARM. Now you can obtain a loan with a 30 year fixed rate, but the lender wants protection. While they realize that the market has bottomed out, the like to know that a 25% equity cushion is there in case the loan goes into default.

It's a catch 22, buy now while prices are still very low, or wait a couple years until lending loosens and prices increase. Our market has truly bottomed out as of last Summer and we are seeing 10-20 % price increases from last year in many pockets of 30A. If you would like any information regarding lending or Real Estate, feel free to contact me direct at, or visit our web site for a free search of all properties

Shay Dassa, Broker RE/MAX Beaches
0 votes
I can tell you that the Homepath program is only homes that are owned by FannieMae. If the bank owned property is any other lender or institution, then Homepath is not an option. One more thing, there are only 11 properties on 30a that are bank owned. The rest are traditional sales or short sales. The market we are in is on a bit of an upswing and any npbank owned unit that comes to market and is priced well has multiple offers within a week. I'm not trying to discourage you, I'm simply trying to be helpful and honest. My expertise as a Realtor can not help you obtain a mortgage that does not exist, but I can save you a lot if time and headache by being honest. Would you be willing to email me your purchase parameters and I will happily send you a list of properties that will suit your needs.

Thank you
Flag Sat Jul 7, 2012
It would be a second home purchase. For a foreclosed property, would I need to find the property and then apply to see if that property would qualify?
Flag Sat Jul 7, 2012
FHA loans require 3.5% down payment.
Flag Sat Jul 7, 2012
Unless it's a Homepath loan on an REO (foreclosed) property, the only other way would be to qualify for an FHA loan if it were your primary residence. Is this a second home purchase or a primary residence ? Please advise.
Flag Sat Jul 7, 2012
Thank you for the info.! When I bought my house here in Georgia (200k), I did an 80/20 fixed rate loan and put down $10k. I'm assuming this type of loan no longer exists either?
Flag Sat Jul 7, 2012
Kim Ryals, Agent, Miramar Beach, FL
Sat Jul 7, 2012
There are less downpayment options but you must qualify for them. There is a loan that a few lenders have called a Homepath loan and you can get into properties using as little as 3% up to 10% percent down depending on the condition of the property. With the right credit, lender and a realtor with the knowledge to assist you can make all the difference. Hope that helps, call if you need the # for those lenders in the area. Coastal Kim Best #
0 votes
Thank you for the info. I looked up Homepath Loans, almost sounds too good to be true. I wonder what the catch is other than having a credit score above 660 and it has to be a foreclosed home? Could area lenders also provide me with any properties that are already on a list that would qualify or do I have to find a foreclosure and see if it will qualify? When is a good time to call you?
Thanks so much!
Flag Sat Jul 7, 2012
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