No banks will finance condos? Where'd ya get your info? We're financed in a condo through Bank of America. Last time I checked, that's a bank...
Where is your condo located? If you are in FL you are lucky! Might be turning around soon hopefully.
http://www.manausa.com/tallahassee-realtor/condominium-financing-florida
"Although it is not exactly impossible to obtain financing for a condominium in Florida, it has become very, very difficult."
http://bulkdeals.condovultures.com/...owntown-miami&catid=2:bulkdeals-blog&Itemid=1
"Despite the efforts of the U.S.-backed mortgage company Fannie Mae, financing was used in only 17 percent of the more than 700 new condo sales in Greater Downtown Miami in the first quarter of 2010, according to a new report from CondoVultures.com.
Buyers acquired nearly 600 units in 29 projects in Greater Downtown Miami in all-cash transactions between January and March. By comparison, financing was used to acquire less than 120 units in 19 projects in the 60-block stretch, according to the report based on the Condo Vultures® Official Condo Buyers Guide To Miami™."
http://realtytimes.com/rtpages/20090102_investorreport.htm
"In instructions sent to lenders before the Christmas break, Fannie Mae said that deteriorating market conditions in Florida -- and Florida alone among the 50 states -- forced it to require higher minimum downpayments and more extensive underwriting reviews before funding new loans.
To better protect itself from future losses, Fannie said it will now require all loan applications for units in new and existing condo projects in Florida to go through an intensive review process by in-house underwriting teams to evaluate the building, its finances and local market conditions. "
http://www.trulia.com/blog/markacampbell/2009/05/condo_s_in_florida-a_big
"Investors have taken a hard stance on Condo financing in Florida. Today certain Investor's such as Chase Mortgage have decided they will not offer the ability to purchase any loans where the the property is secured by a condo. Other Investors have place limits on the maximum Loan to Value at 75%. Borrowers who are looking to purchase a 2nd home Condo are like wise receiving the grim news of difficult financing terms. Most 2ND home Condos in Florida are limited to 70% LTV.
Investors looking to buy units in Florida are out of luck unless they can pay cash for the unit.
What is causing all the problems?
Well the foreclosure rate on Condos in Florida is thru the roof and many Investors are concerned about the health of the Condo Associations. With condo revenues way down due to foreclosures and unit owner struggling to keep up with their maintenance fee's Banks are concerned that these condo associations will go into Bankruptcy.
The problem with This decision to limit financing on Condos has many qualified buyers and borrower's looking to refinance their condos at better terms in a pickle.
Highly qualified Borrower's can't refinance even at 80% LTV's and with high 700 credit scores."
