Posted by: chris
on Mar 20, 2012
Not far behind Splash, Calypso condominium received a Special Approval Designation from Fannie Mae. The approval is for a period of nine (9) months. This will once again allow approved lenders to offer qualified 30-year fixed rate loans on these condominiums. This means Fannie Mae will accept loans for newly originated mortgage loans, and newly originated refinance transactions of existing Fannie Mae-owned loans.
Posted by: chris
on Mar 12, 2012
In a virtual repeat of 2011, the first quarter of 2012 has seen strong sales in the Panama City Beach condominium market. Sales for February 2012 were an improvement over those for the previous year with 77 units sold as compared to 69 in February 2011. Despite this increase, it seems likely that overall sales for 2012 will approximate those for 2011 as condo prices and sales seek their natural level in the current Panama City Beach real estate market.
Posted by: chris
on Feb 17, 2012
June of last year Splash and Calypso condominium received a Special Approval Designation from Fannie Mae. This allowed approved lenders to offer qualified 30-year fixed rate loans on these condominiums. Splash was just re-approved for this program. This approval extends Splash condominium’s eligibility until February 16, 2013.
Posted by: chris
on Jun 11, 2011
Due to the economic downturn, lending criteria for condominium financing had become more stringent. However, loans have been readily available to qualified buyers who have built strong credit histories and demonstrated the ability to provide down payments of 20 to 30 percent. These opportunities include five-year ARMs and 15-year or 30-year fixed loans.
Posted by: chris
on Oct 18, 2010
Financing a condominium in Panama City Beach can be quite a challenge these days, a situation that has existed for some time now. Beginning early in 2009, condominium lending fell into a sharp decline. At present, there are apparently just three banks offering consistent loan programs for condominiums in this area. Vision Bank, Regions Bank and Compass Bank all have programs available for many local condominiums.
Now, two more condominiums have made the banks' "No interest in lending in this building list." Calypso and Splash Condominiums have been added to the properties for which bank financing is not available. Association litigation led to Calypso's inclusion, but Splash was added
Posted by: chris
on Nov 12, 2009
Several sources across the internet are posting articles about new FHA underwriting guidelines. The specifics of this new guidance can be found here (FHA Temporary Guidance for Condominium Policy). Different sources are posting articles with different opinions on these changes. The Miami Herald is claiming it could boost the condo market:
FHA Moves to Boost Condo Market
The Federal Housing Administration is giving the condo market something it hasn't had for a while -- a little breathing room. Last week, the FHA, the federal agency that insures low-down-payment home loans for private lenders, said it was relaxing its building underwriting guidelines as a way of helping the struggling sector ride out the downturn. The move could help boost sales in condos by making more FHA mortgages available to borrowers. (Source: Miami Herald)
Posted by: chris
on Jun 13, 2009
Well, not exactly.
Tropic winds actually has some of the best financing available without any of those annoying 1% points upfront, but we will get to that later. The secondary market (the people who actually buy the mortgages from the banks you loan from) has added Tropic Winds to their list of condos in Panama City Beach they will not finance. Our current list includes:
Laketown Wharf
Shores of Panama
Origin at Seahaven
Tidewater
Emerald Beach Resort
and now Tropic Winds
Tropic Winds was added because only a handful of owners have currently closed on the building. This condominium just completed construction in February and preconstruction contract conversions have been challenging for years now.
The developer of Tropic Winds has had several condominium projects in Panama City Beach, including Ocean Villa, Ocean Ritz, Tropic Winds, Emerald Isle, and Ocean Reef. The two bedroom floor plans are almost identical in every building. Even with credit tightening again this past January, we have seen a natural absorption rate in the mid to upper 200's for most of these two bedroom floor plans.
This building has no debt. No construction or land loans. This building is completely capable of taking its time and selling at a normal market pace. The only challenge came recently when the banks decided not to offer any more loans there. I really wasn't surprised to see a private investor show up. This private investor is offering loans at slightly lower interest rates than the banks without charging an origination or discount point.
We are likely to see the banks come back to the table after a certain percentage of the units close in this building. As long as the private investor is around I don't think anyone will pay much attention. After all, who wants to pay points on a loan with a higher interest rate?
Posted by: chris
on Mar 30, 2009
In January the loan programs for condos tightened standards again. If you are looking to purchase a condominium in Florida as a secondary residence, many programs have changed. If that wasn't enough, there are entire condominium buildings that banks are refusing to write loans for.
There are no more loan programs with 10 percent down. The 30 year fixed rate mortgage programs have also disappeared. The new loan programs require a fully documented loan with 25 percent down. These loans are only offered as 3 and 5 year Adjustable Rate Mortgages. These are the programs that most banks use to give buyers loans on new purchases.
Three Condominiums in Panama City Beach now have financing problems. Emerald Beach, Shores of Panama, and Tidewater are all on a list of condominiums that these programs will not finance. Emerald Beach is classified as a Condotel because of Wyndham's purchase of the entire tower III. Tidewater was classified for its beach not being big enough for the number of units in the building (I didn't understand that one either). Shores of Panama was classified due to its bankruptcy (This should change as they emerge from bankruptcy).
