Follow me to South Walton - Coastal Living 

​Feast your eyes on morning SUNRISES over the Emerald Coast in this TOP floor luxury condo. Experience the Gulf's white sand and clear water in B403 by simply walking across the street. Perfect for dining in, as there is a full kitchen equipped with granite countertops, stainless steel appliances, oversized pantry, and stack washer/dryer in hallway. A large high-top table by the window provides you with breathtaking views. Every room has a 58" Smart TV and is beautifully decorated with a beach theme including hardwood floors. Community amenities include a pool, hot tub, children's splash pad and a grilling area. As a rental it can occupy 10 comfortably, but is also a great place to call home. It is conveniently located near restaurants, shopping, golf and movie theaters.
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Fabulous townhome in Cassine Village. If you are wanting to be in the middle of the action in Seagrove and only minutes to walk to the beach, let me show you Cassine Village. 

​This stunning and graceful new home will capture you by its quality construction and impeccable design. The alluring sugar white beach is only half a block away from this peaceful Blue Mountain Beach community. This 5 bedroom, 3.5 bath home has gulf views, a salt-water pool and a great open floor plan. Beautiful re-sawed oak floors grace the floors and the ceilings are V-groove wood. The one-of-a-kind front door is made of spanish cedar. There is a formal dining room and an enormous gourmet kitchen. The kitchen cabinets are wainscoting and the pantry is one of the largest you will ever see. Additional features of the kitchen include top of the line, stainless steel appliances, a large kitchen island made of white ice granite, a wine refrigerator and icemaker.
A mud room leads you to the courtyard and pool. The second floor has the master suite and 2 additional bedrooms. The master bedroom has a private balcony and the master bath has a separate shower with twin showerheads, a double vanity and a lava limestone garden tub. The 3rd floor includes a bedroom, bunk room and 1 full bath. This brand new home is strategically placed in Blue Mountain Beach which is characterized by both lavish gulf front private residences, and simple Old-Florida cottages. It is one of 30A's most sought after communities; a paradise set on the highest elevation in the Gulf of Mexico. Monikered from the lush lupines that grow wild along the shores of one of 30A's coveted coastal dune lakes, Blue Mountain is truly the purveyor of the 30A lifestyle. This home is being sold furnished and rental ready.

                                                  VIRTUAL TOUR 

This is a GREAT time to buy a second home here on the Emerald Coast.  Many here believe we will see the continuation of home values in the next coming year. Because of this belief it has brought in to the area more people wanting to purchase this year.  
The stock market is up and many are enjoying an increase in their portfolios as well as their 401k.  We are seeing more and more buyers now wanting to keep their money in the market and finance the second home purchase. Financing a second home for lenders is what they do and most of the time the interest rates are competitive to a primary home purchase with the required down payment requested by the lender. 

However in the past 10 days and happen again yesterday I have been asked about the availability of 100% financing of a second home three different times. They share with me they have either heard or they tell me they know someone who has done this type of mortgage recently. While I know a little bit about financing and how it relates to a sale of property, I respond to them - you should always seek out your options with a proficient lending expert who can provide assistance with structuring your mortgage for the purchase.  

But I did make some calls yesterday to local mortgage lenders and banks to see if any new loan products have come to the area allowing for a one loan 100% second home purchase. (answer was no) however they all shared with me about the three ways of doing this that we have seen buyers employ in the past. 

1. Use the equity line of credit on another property you already own as the down payment – this is the most common method we see used to purchase second homes when a buyer is looking to have minimum to no money down at the time of purchase.  Equity in a current home is considered an asset you already own, normally all that is needed from you by the lender is to provide terms and conditions of the loan so when qualifying  they can add this to the debt ratio.  

2.  The Pledged Asset Mortgage (mostly offered by your brokerage house) - this feature allows you to increase the size of the loan on your home up to 100% of the value of the real estate, by pledging the additional assets in the form of a securities account in lieu of the normal down payment.  The Home Loan will be secured by both the home and the Pledge Account. A Pledged Asset Mortgage involves pledging securities as collateral for a home loan in lieu of making a cash down payment. By using the Pledged Asset Mortgage feature, you are subjecting the investment in a home to the fluctuations of the securities market.  The Pledge Amount varies based upon your effective Loan-to-Value determined during the application process of a first mortgage loan. Normally the value of the securities held in the Pledge Account must be maintained at the Pledge Amount.  If the value of the securities in the Pledge Account falls below the agreed-upon Floor Amount, the owner of the Pledge Account must deposit into the Pledge Account acceptable securities or other collateral to stay in compliance with the terms of the home loan. Many of these type loans allow you to continue to trade the securities in the Pledge Account.  

 3. Cross-collateralisation Mortgage 
Cross-collateralisation occurs when more than one property is used to secure a loan. For example, a person owns Property A and wants to purchase Property B without using any of their own funds. The bank can use both properties as collateral for the new loan.  Cross-collateralisation may often seem to be an appealing option to a buyer, but I have been told it puts banks in a stronger position as it provides them with greater control over the properties. One lender said it has a benefit initially, in that he or she has not had to use their own cash to acquire the second property; however this strategy does have the potential to negatively impact future opportunities.  
1. LOSS OF FLEXIBILITY
If a property is cross-collateralised it can limit severely the way in which sale proceeds may be used if sold. 
2. INCREASED COMPLEXITY 
It is often the case that every property in a cross-collateralised portfolio needs to be re-valued whenever one property is released. 
3. LIMITED PRODUCT CHOICE
Regardless of one’s asset position, many banks will want to control the type of loan that they will make available to a buyer when his or her aggregate debt with them is high. The lender said if can often be a better strategy for a buyer to use multiple lenders and therefore gain access to the most suitable loan products.
4. CHANGING LENDERS CAN BE DIFFICULT AND COSTLY  
When a loan(s) is secured by multiple properties, the establishment fees are usually higher as they include charges for ‘additional’ security. (both properties) This cost can be compounded when an owner wishes to move those cross-collateralised properties from one lender to another.
5. EQUITY ACCESS
If the equity in the property increased value over time is inaccessible.

Hope this was helpful! If your looking to purchase a second home call me, I would be happy to help you with finding your dream home. 

​Financing Condos and Condotels in Destin, Miramar Beach and Santa Rosa Beach, Florida are very different because of the resort like qualities that most of our condominium complexes have along the Emerald Coast.

As we have noted in earlier post, choosing the right agent is very import when listing your condo for sale. As much as we all would like to have cash buyers when we sale our condo, we know that’s not the reality. The market and economy is bringing more buyers into our area and financing is growing to be a larger part of these transactions.  This is good for sellers because with more buyers we should see increase of property values. As noted before if you are going to accept an offer and take your condo off the market, you as a seller have a right to know who is doing the financing. We hear the story all too often of sellers accepting offers and to find out a few weeks later the buyer can’t get it financed with their bank or lender and seller then looses those days on the market.  A seller chooses a condo specialist and much of this can be avoided.
 
Same thought also applies to buyers as well. Choose an agent who knows condos! Someone who understands that if you want to finance then focus on what is available to you. This includes upfront having the discussion about what your goals are in purchasing a condo, what kind, max price, income generated, and how much you can put down. (Very important as the financing changes with down payment.)  Just the other day I got a call from a frustrated buyer who had been working with another agent. The agent was very nice and seems like a good fit in the beginning but as they got into looking and making offers they became very frustrated with the process. See, the agent showed them many units in their price range and got them very excited but never asked them if they were financing and if so how much are you putting down (down payment). The agent showed them condos in 300k price range as asked by the buyers.  But failed to know they were only able to put down 10%.  Many of the condos that the agent showed (and got the buyer excited about) required 30% down or 60k more in down payment! Unfortunately this was unrealized until offer time. What a waste of the buyer’s time with them being here for only a week. 

How even a strong borrower gets denied.
Financing condominiums along Florida’s Gulf Coast can be a very tricky process. The difference in financing a condominium compared to single family homes is that lenders are required to get the property approved in addition to merely approving the borrower. This is the main reason that I would NEVER recommend that a buyer use an out-of-town lender when financing a condo in Destin and the surrounding area. Lenders that are not located in this market are not familiar with our properties.  Many of them have very unique characteristics which can make them difficult to get approved.  Most out of state lenders are not familiar with these nuances. It is important to note that a loan can be denied because the condo is not approved no matter how strong a borrower is with credit/income.  Even if the borrower has a top-tier credit score, high down payment, and low debt ratio, a lender will still deny the loan if they determine that the condo building has certain characteristics.

       Condo or Condotel?

There are many reasons why a lender could deny a condo for financing. Here are a few:

• The (HOA) may not allocate enough of their annual revenues to a reserve fund. (This is a big one)
• The HOA may not carry adequate insurance coverage. (This can be fixed if HOA is willing)
• There is too large of a percentage of investors as opposed to homeowners. ( If owner Occupied or 2nd Home this no longer is a issue) 
• Too many unit owners may be delinquent on their monthly HOA dues.
• Condotel classification – The most common reason that I see a condo denied is that the out-of-market lender has classified the project as a “condotel”  (Fannie has it on its un-available)

A condotel is condo that has many of the characteristics that are found in a traditional hotel, such as: availability of nightly rentals, daily maid service, registration services, central phone system, and resort-like amenities. 

Loan Denials Late in the Process!!!
Many out-of-state lenders will not determine until several weeks into the process that the project does not meet their requirements. When this happens they deny the loan.  Sometimes these denials come in the 11th hour of the loan process.  This denial often happens after the lender has had the HOA complete a condo questionnaire; and this often happens after the borrower has paid for an appraisal and/or inspection quite often, these lenders will deny a building when a local lender could have actually approved the condo for conventional financing. Federal lending guidelines thru Fannie Mae and/or Freddie Mac do not necessarily classify a condo as a condotel simply because the project offers nightly rentals—but many out of town lenders will tell a borrower they cannot proceed with their loan as soon as this fact is uncovered! Generally, a local condo lender can or already has reviewed the condo project, to determine that the out-of-market lender is incorrectly classifying the condo project as a condotel.  When this happens, the buyer is able to obtain a regular, conventional loan. This means better interest rates and terms too.
Lastly, most out-of-town lenders are not going to have a condotel loan program available in the event that the condo is accurately classified as a condotel. With many of the local condo lenders, they do offer condotel financing if the building is indeed a true condotel.
 
 
Call me and I will happily discuss your goals and needs and see if our team of condo specialists can help you find that perfect condo!!!

It is getting to the point on the 30a that the communities like Rosemary, Alys and Seaside need no introduction or welcome signs, you know this is where you are! Rosemary is continuing to change, you are seeing homes being purchased for the lot and new homes being built in their place. As well as the new condominiums being built.  Rosemary has an allure of sophistication where every you look. Have you seen the new art work in the green spaces? Or the new pool? Have eaten dinner at the Pearl? All are fun!  Today Rosemary Beach is one of the go to places on 30a even for those not staying there. If your wanting more info about this wonderful exciting place on the beach call me and I will happily show you why it is in such high demand.  http://bit.ly/RosemaryBeachhomesforsale

Just enjoying a weekend doing nothing and hanging out at Rosemary Beach, We love coming here for the weekend. Great food and relaxing!