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 were 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.