I am interested in buying a second home in Florida. What are the total costs of ownership that I need to be?

Asked by Mike, Pennsylvania Mon Feb 23, 2009

aware of? insurance, taxes, HOA fees, property management, maintenance?

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Answers

8
Cathryn Blai…, Agent, Cape Coral, FL
Wed Feb 25, 2009
Mike,

In addition to what Rick just stated, to aquire the loan, you must now pay 20% down as Freddie Mac and Fannie Mae will no longer insure Second homes or Investment properties with PMI so you would not be able to put down anything less.

You will also need between 3 to 6 months "reserves" in the bank. (Reserves are your future PITI house payment.)

You might want to count on 4-5% in closing costs as well, unless these costs are covered by seller concessions.

The up side is on a second home, you can still get a good rate, but please do not expect anything in the 4's. I understand that rates of about 4.9 is being advertised by some of the big banks to get the phone to ring, but it is on a 20 year amortized loan which at the end of the day will cost MORE than a 30 yr. fixed amortized loan at 6.5%. (What big banks will do to grab your business, sigh.)
The other unfortunate thing is the trade-off is a few thousand dollars in junk fees, so you lose out twice!! They make you THINK you are getting a good deal, when actually you are paying more. It is actually more cost effective to go with a reliable Mortgage Broker, as we depend on referrals by satisfied clients and never get any extra "stimulus monies" to line our pockets.
If you have any more questions regarding financing feel free to contact me.

Cathryn Blair-Bennett
First Capital Lending Corp.
239-277-9244 Ext. 212
cblairbennett@FirstCapLend.com
2 votes
Tammy Hayes, Agent, Port Charlotte, FL
Thu Apr 3, 2014
The fees will be different depending on the type of property you buy. For instance, if you buy a condo the HOA fees generally cover flood insurance, building insurance, maintenance and sometimes trash, water and sewer. If you are purchasing a single family home in a deed restricted HOA community then you will have to pay homeowner association fees. If you purchase a single family home in a non deed restricted area, then there are no HOA fees. The HOA fees vary quite a bit from community to community.

Expenses of owning a home:
Homeowner insurance
Flood insurance
Property Taxes
HOA fees
Property management
Maintenance
Pest Control
Florida Power and Light
Telephone
Cable/TV/Internet
Water/Sewer or Well/Septic

Tammy Hayes, Realtor
Re/Max Palm Realty
http://www.tammyhayes.remaxagent.com/
0 votes
Kathlow, Home Buyer, Lehigh Acres, FL
Thu Mar 13, 2014
Hi, I have been thinking about that issue myself. I am a non american citizen living in Vienna, Austria and wants to buy a second home in florida both as and investment and also to get away from winter in Austria. Unfortunately, it seems impossible fo r me to find a reputable insurance company who would sell me a second home insurance policy in florida. So check out the availability of insurance first, would be my advice. Many big insurance companies have pulled out of florida. I am a cash buyer but I am not willing to self insured.
0 votes
Hi Kathlow,

Im presently selling my home In Ft myers / Lehigh. pretty big house with lots of room.. The florida room alone can be converter ed to anoth 2 bed rooms if you so wish. Making this a 5 bedroom home.. Large 1/3 acre lot and the main reason I bought this place 3 yrs ago was the Hugh de tached garage work shop.. its like having another house on the property. Heres a link so that you may view a tour here.. Home is estimated at 135k will take 95K cash buyer/ investor as it needs a few thing completed in the Landscaping and New AC. view tour here>>> You can get insurance for this home.https://www.youtube.com/watch?v=Ky70CBHhtRQ
Flag Mon Mar 31, 2014
Tonya, Home Seller, Florida
Mon Mar 9, 2009
We are selling our home in Palm Harbor Fl right outside of Tampa. If interested: tgrass1@verizon.net
0 votes
David Chambe…, , Saint Petersburg, FL
Wed Feb 25, 2009
I can get a second home loan at 90% LTV with up to 3% seller concessions allowed, you cannot waive escow, 5% of the down payment must be from borrowers funds, the rest can be a gift from a family member. Min Credit score 620

http://www.floridadreamloans.com
0 votes
Rick Aguirre, Agent, Orlando, FL
Tue Feb 24, 2009
Mike,
Great question and thanks for asking.

1.Insurance
2.Taxes ( ugh)
3.HOA Fees
4.Property Management
5.Accountant fees
Property amangement fees can include both lawn and building maintenance.
Hope this helps.
Rick.
0 votes
Lisa Cicchesi, , Fort Myers, FL
Mon Feb 23, 2009
Mike now is the right time to buy a second home in Florida. With prices at record lows and interest rates the lowest we have seen, now is the time to buy....Please feel free to contact me with any questions you may have concerning down payment, financing available and types of loans that would best suit your needs.
Web Reference:  http://www.capecvm.com
0 votes
John Giddens, Agent, Fort Myers, FL
Mon Feb 23, 2009
Hi Mike, Those are some good questions, I can assist you and would like for you to contact me via the link below to my website, I would like to speak with you about certain specifics of the h9ome and area you are looking to purchase in. Thanks and have a great day!

--
JOHN GIDDENS
Broker-Associate
Century 21 Birchwood International
4150 Hancock Bridge Pkwy #13
N.Ft.Myers, FL 33903
239-362-8863 (Cell)
239-995-0528 (Fax)
johnwgiddens@gmail.com
0 votes
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