r8ocean, Home Buyer in Fort Lauderdale, FL

Im looking at a $120k condo....Is true that I must put 30% if its not my primary residence? and not 20%? I own 2 other properties, one I live in &...

Asked by r8ocean, Fort Lauderdale, FL Mon Jul 15, 2013

the other rented out in Pennsylvania. Thank you

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7
It is very possible. Each condominium association has their own rules. For example, one I recently sold required a minimum of 20% down, but also require a full year's maintenance be paid in advance and held in the associations bank account for 2 years.

Dee Vanover, Broker-Associate
Timothy P Smith PA
954-370-7291
1 vote Thank Flag Link Mon Jul 15, 2013
Lenders are different so check your pre-approval. Downpayments and rates are higher for investment property.
1 vote Thank Flag Link Mon Jul 15, 2013
Hi there,

who gave you the information that you need to put 30% down? Was it your lender? If they require that down payment you can shop around. Different lenders different rules. One lender may accept 20% down.

Condo associations as well could have different rules and can ask a possible buyer for a minimum down payment on a financed Unit.

If your lender made the requirement shop around, if the Condo association requires you to put 30% down than there is no way around. If it is just street talk than consult with a lender and they are happy to give you the requirements on the loan program they can offer you.

Hope the information helps you out.

Annett T. Block
Florida Connects Inc.
http://www.FortLauderdaleRealEstateDeals.com
(954) 543-1794
0 votes Thank Flag Link Mon Jul 15, 2013
The first step in new homeownership is to speak with a lender to see what you qualify for. Also, your lender can give you the right answer to this questions. There are a lot of different Rules and Regulations for each condo building and different conditions that have to be met for every lender. The financial condition of the building and whether or not there are Reserves are big factors for what has to be put down in order to obtain a loan.`

Barbara Easton-Irvin
Atlantic Properties

http://www.FortLauderdaleHomes4U.net
0 votes Thank Flag Link Mon Jul 15, 2013
Well, who told you that you must put 20% down - your real estate agent, the Condo Association Rules or your lender?

In addition to the answers you were given herein, if you lender told you that you need to put 30% down, it may be because you own 2 other properties and, now, your income vs your ability to carry three properties may be what is required, 30% down. It happened to one of my long-time wealthy customers whom I have sold them four properties that they own at the same time (main residence they own cash and the other three are investment properties) and all with the same lender and banker whom he and his wife have been dealing with for the past 22 years. So, it ended up that their banker refused to give them another loan because they no longer wants to take the risk on them. They seek another lender and all went fine to buy the 5th property.

However, there are a bunch of lenders out there who refuse to lend any money towards condominium purchases only if buyers put down at least 30% cash.

But, if it is the condo association that requires that, then, if you want to buy in that condo, you will have to comply. Remember that condos have all been taken and hurt by the mortgage defaults of the 2006-2011. They are wiser, now.
0 votes Thank Flag Link Mon Jul 15, 2013
Different condo associations have different rules, so it could well be that the specific association that you're looking at, requires the 30% down if it isn't your primary residence. It could also be a requirement of your financing, which is nothing to do with the condo requirements.

Have you already been pre-approved by a mortgage broker? If you need help with finding a mortgage broker or if you want additional help regarding this association, don't hesitate to let me know. I'd be happy to help you,

Best regards,

Angela
Villa G Realty, Inc.
Tel: 954-816-7996
Web Reference: http://www.villagrealty.com
0 votes Thank Flag Link Mon Jul 15, 2013
Did your lender/banker advise you of the 30% or did your Real Estate Agent?

My advise is to speak to a mortgage broker. Otherwise ask your agent to elaborate. Or you can call us and we will sort it out with you.

Maria Sabio
Chane Realty
954-336-5156
0 votes Thank Flag Link Mon Jul 15, 2013
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