Loans for Orlando Condos?

Well, it was just a question of time – and it’s been a very long time it’s true – but it sounds as if Orlando condo loans may slowly be creeping back onto the mortgage radar, at least for certain kinds of purchases.

Yes, there are caveats, and we still don’t know of any loans for those wretched Orlando condo foreclosures at the $50K price range, but I did receive an email this week from a bank claiming to be able to loan on “non-warrantable” condos and Orlando condo condo hotels. Here’s the scoop:

  • Up to 1.5 million at 80% loan to value for owner occupied and 75% for second homes.
  • For Orlando condotels, the maximum loan is $500,000 at 70 -75% loan to value.
  • Both loan programs require strong borrowers with 720 credit scores and at least 12 months of PITI of non- retirement reserves.
  • An ARM product is available with 3 to 7 years of fixed rates with a 30 year amortization.
  • Loan amount must be $100K or greater.

Orlando condo conversions may also qualify for domestic residents under certain circumstances. (Foreign national loans are still limited to persons coming into the US that have an employment contract with a US corporation).

For all loans, including Orlando condo hotels and Orlando condo conversions, the following provisos apply:

  • No structural or environmental issues.
  • Properties must have a full kitchen and a separate bedroom.
  • Must be owner occupied or second homes only.
  • The project must be complete (phase complete is ok) including common areas.
  • No pending litigation.
  • Must have adequate insurance.
  • Must have established HOA reserves if it’s a turn over from the builder.

So, in practice, which sorts of projects are we talking about? Here are the main candidates:

An obvious local condo hotel candidate is the Lake Buena Vista Resort and Spa condo hotel near Disney. Foreclosure pricing is typically just over $100K, down from around $3-400K. No loans have been available on this product for a couple of years now, with all deals being all cash only.

Here’s another fantastic condo deal in Winter Park which could qualify. This one’s a one-off.

Downtown Orlando condos. These typically meet the $100K or greater price tag and satisfy the above requirements. This could be a bid deal since lending has been a huge issue on all of these projects. There are some fantastic downtown Orlando condo deals but while many investors have $50K in cash, very few have the necessary $200K or more. Thus, a luxury penthouse reduced by a million dollars may be a steal, but without a loan, it has been pretty much untouchable.

If you are currently unrepresented by agent and would like to use Condo Metropolis as your broker, call today to see if can qualify for one of these new condo loans: 407-901-5161

3 Comments

  1. About time, this is great news. Do you think orlando condo loans will soon be available across the board?

  2. Is financing available for owner occupants in Park Central? If so, is it FHA. Most recent sales have been for cash. It is great for first time buyers if you can get financing

  3. Park Central will not qualify per the guidelines above, ie. units are under $100K and they are also condo conversions which do not meet all the guidelines. Even if they did qualify, it would make no difference since you’d be up against a bunch of cash buyers and the bank will always take cash over financing.

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