One of the most common questions that we receive as mortgage brokers seems to be directed towards financing Sarasota condos for sale. Most clients want to know the minimum amount that can be put for down payment. (Loan to value)
Generally, for a primary or secondary residence the minimum down payment is 20 percent, for an investor the requirement would be 25 percent. When a borrower chooses a lower loan to value, the condominium is subject to a full review by the lender. Some of the expectations of the lender that may be included are as follows: 1. No more than a 49 percent investor concentration, 2. No entity can own more than 10 percent of the units, 3 The homeowners association dues cannot have more than a 15 percent delinquency in payments. 4. The association cannot be in litigation.
For a primary and secondary residence some of the above restrictions can be lifted by a reduction of loan to value or putting 25 percent down. Also some of the local banks will allow “non-warrantable condos” those that do not meet the above expectations to fit into their portfolio programs allowing more options for buyers.
-- Gina Damico, Liberty First Mortgage, LLC