Make a splash on New Year's Day and enjoy a bonfire, music and food!
Registration starts at 11am at Gulf Place. “Plunge” into the Gulf of Mexico starts at 1pm sharp! A $20 donation is encouraged as all proceeds will benefit the SWFD Department Relations Committee (DRC). The DRC purchases fire/life safety educational-promotional items for community based educational programs that are held throughout the year. For more information, contact Sammy Sanchez at ssanchez@swfd.org Walton County Lowers NFIP Community Rating from Class 6 to Class 5 – Some Flood Insurance Policies Discounts to go from 20% to 25%![]() From the Walton County Website During their regular meeting on Tuesday, December 13th, the Walton County Board of County Commissioners (BCC) was presented with a certificate from the Federal Emergency Management Agency (FEMA) regarding their participation in the National Flood Insurance Program (NFIP) Community Rating System (CRS). The NFIP-CRS recognizes floodplain management and outreach activities performed by communities that exceed the NFIP minimum standards. CRS is a voluntary program which recognizes a jurisdiction’s efforts by reducing the cost of flood insurance premiums by 5 to 45 percent for flood insurance policies in communities that participate in the CRS. A jurisdiction’s final CRS standings are derived through a point system. Points are awarded based on the following criteria: 1. Public Information 2. Mapping and Regulations 3. Flood Damage Reduction 4. Warning and Response Historically, Walton County has been part of the CRS program. In 2015, the County held a Class 6 rating which provided a 20% discount on some flood insurance policies to the public. Following this year’s recertification, Walton County secured a Class 5 rating which will increase that discount from 20% to 25%. The increase in the County’s CRS class was based on additional information under the “Warning and Response” section for our annual recertification. The process of recertification took several months, and required the participation and coordination of several County departments including Emergency Management, Planning and Development and Public Works. Benefits of the CRS Program • Improved public safety through outreach, public alert notification systems and better flood response plans. • The opportunity for a community to evaluate the effectiveness of its floodplain management program against other state and nationally recognized benchmarks. • Savings on flood insurance policies covering publicly owned and leased buildings. • More money staying in the community instead of being spent on flood insurance. • A reduction in flood damage and increased environmental protection. • Residents being reminded the community is working to reduce flood losses and lower insurance costs. • More knowledgeable residents and greater support for flood protection measures as the result of outreach activities. • Lower insurance costs which may provide incentive to those on the fence about purchasing flood insurance. While Walton County will now retain their Class 5 rating for the next 3 years, information must be sent on an annual basis to confirm that rating. Following the 3-year cycle, a full recertification must be conducted with will include an onsite visit from FEMA representatives. For questions, or additional information, please contact either Emergency Management Director, Jeff Goldberg, at 850-307-4121 or Floodplain Manager, Aaron Craker, at 850-267-1955. http://www.co.walton.fl.us/civicalerts.aspx?AID=1443 Great Home in the Indian Bayou Country Club area of Destin Florida.3 Cahaba Court, Destin, Florida 3254 Who's ready to move to Destin? This is a great neighborhood for primary residence and second home owners. Thank you for your interest and for sharing with others. ![]() Inviting floor plan, this well maintained 1-level brick home is located in the popular Indian Bayou community; past the Country Club (www.indianbayougolf.com) on a quiet cul-de-sac with a large fenced back yard and attractive landscape. The 4th bedroom is currently setup as an office. Request the list of upgrades for this great primary residence or second home. Includes New Roof-2010, Upgrades to Sprinkler System-Programmable (pump from Well), large outdoor Screened Room - great for entertaining, Master Bath remodeled, large Utility/Laundry room, built-in Wet Bar in Sunroom, Wood-Burning Fireplace, Alarm System, flood zone X, LOW HOA's! Seller offers this lovely home NOT Furnished - however Refrigerator, Washer and Dryer will convey with the property. EVERY CHRISTMAS STORY EVER TOLD (AND THEN SOME!) THE REP IN SEASIDE.
We have seen 5 and plan our 6th this year. LOVE IT !!!!!
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USA Today called The REP’s Every Christmas Story Ever Told one of America’s “WACKIEST, TACKIEST, AND HAPPIEST HOLIDAY EVENT(S)!”
Why go out to see another Christmas Carol, The Nutcracker, and watch It's a Wonderful Life on TV when you can see all 3 (and many more) in one 90 minute show? The REP's 7 year smash hit Every Christmas Story Ever Told returns with all of your favorite "Beloved Holiday Classics" crammed into a night full of high-energy jolly, frivolity, and hilarity. 3 REP actors, armed with a bazillion props and costumes, send up everything from Charles Dickens to Dr. Seuss, Jimmy Stewart to Chewbacca in this ever-evolving REP holiday favorite. It’s the perfect way to get ready for the season, beat the festive fatigue, and share some holiday cheer! For Dates and Times Click Here and Tickets Click Here. Destin Florida, Sandestin Fl, 30A and PCB Condo Questions and AnswersWhile Fannie Mae has streamlined the process by which condo developments can obtain approval, the reality is that very few projects are approved. To see if a condo you’ve got your eye on is eligible for Fannie Mae or Freddie Mac financing, you can find a list online. Don’t be surprised, however, if your state has just a handful (or even zero) of condos listed. If you’re financing a condominium purchase, plan on a little longer processing time. Lenders have to assemble a lot of paperwork before submitting a package to approve projects for mortgages. It can add some days to your closing, and this should be considered when you’re deciding to lock in an interest rate. What does the lender require from the HOA or Condominium manager? All Lenders will require the HOA to fill out their condo questionnaire, there are two types Full (Long form for max financing) or short form (limited review) limited review does require on average for the borrower to put more money as down payment. 1. Lender Condo Questionaire 2. Copy of the Annual HOA Budget for the current year An acceptable Budget will include the following: • Line item expense for Reserve account, separate from the Operating account. • Line item expense for the insurance premium and deductible • The name of the HOA must be shown on the budget 3. Insurance Company Information: Copy of the Condominium Project’s Certificate of Insurance for Property and Liability; Fidelity Bond Coverage (Employee Dishonesty), if over 20 units, and Flood Insurance, if applicable. More lenders are requiring all pages of the policy for review. 4. Required Documentation for New Projects or New Conversions: Copy of HOA’s Declarations (CC&Rs) that have been signed, stamped and filed. Copy of all recorded addendums to the Declarations Copy of HOA by-laws and addendums A full review is required for max finacing with Fannie Mae and Freddie Mac backed loans this means loan can have smaller down payment and can be a 30 year fixed for primary, second and investment propeties. The loan amount is limited to a max 417k (soon to be 424K) 5% down as a primary and 10% down for second homes. The guidelines of a full review are:
b. Limitations on ability to sell or first right of refusal c. Amendments to docs d. Rights of mortgagees and guarantors e. First mortgagees rights f. Unpaid dues g. Minimum square footage of unit is 400 square feet Limited and full project reviews have duration of 180 days. A limited review is conducted by the lender – it’s just a questionnaire that’s completed by the property manager or head of the homeowner’s association. To be eligible for a limited review, you must put down at least 20 percent for a primary residence or 30 percent down for a second home. Has the same loan amount limits as above. Limited review criteria are:
If you have any questions please call my office 850-650-6985. We look forward to seeing you at the beach soonDestin, Miramar Beach, 30A and Panama City Beach Fl Condo Financing Questions![]() After extensive searching, you have found a great gulf front condominium with a strong onsite rental program, and restaurant, indoor and outdoor pools and lots of other great amenities. You’ve contracted to purchase and now all you have to do is go back to your local bank to arrange for financing. From experience with these type transactions is that a buyer in this scenario will face a high percent probability of loan denial regardless of their strength as a borrower. Worse yet, the problems typically surface at underwriting-the last step before loan approval and very close to the closing date. When this happens, a buyer usually has to start over with a local lender and extend the closing date. They may have already paid fees that can’t be refunded and will have to expend more time and effort to re-apply. If a buyer chooses to not apply for a loan through a lender that can finance this property, the earnest money could also at risk because financing contingencies are usually based on the Buyer’s ability to qualify for the mortgage. If the loan is turned down because the buyer chose a lender that doesn’t have a financing program to fit the property even though local financing was readily available, this generally does not entitle the buyer to a refund of his earnest money. Buyers often turn to their local banks because they have developed relationships with them and trust their judgment. Unfortunately, these lenders have usually had no experience with this type of property. When they say they don’t think they will have a problem, they are telling the truth. They really don’t think they will have a problem. As previously stated of the financing attempts of this type that our company has witnessed have failed and they all had one thing in common: Every single loan officer, often a trusted loan officer of the buyer, was truly sure they wouldn’t have a problem right up until the loan denial. Another reason people choose lenders out of our area is that they think they can search the internet and find a better interest rate or better terms. The same pitfalls apply. These lenders are not familiar with our market or these types of properties and their failure rate is about the same. Financing a condo, particularly if it is in a property with an onsite rental management program, is very different than financing a primary residence. Financing is readily available through our experienced local lenders. Q. What is a “Condotel”?
Gena: We’re using the term “condotel” to include a broad group of properties which typically have one or more “Hotel” type characteristics. Typical features could include an onsite rental office; onsite commercial space(s) such as restaurants, day spas, convenience stores, etc.; PBX phone system; high-level guest services such as 24-hour check-in, daily maid service, concierge, valet parking, etc. Q. Why is my choice of a lender to finance my condo purchase so important? Gena: It’s important because in my years of selling condos in the financing attempts through inexperienced lenders have caused more problems than any other single factor, resulting in loan denials most of the time. This is also important because it is the easiest problem to prevent. Q. Why can’t I just find the best residential mortgage loan program and use it to finance my purchase of a resort condotel? Gena: Financing is often property-specific and certain loan programs will not work for certain properties regardless of the strength of the borrower. This concept is alien to some lenders. The reasons for this have nothing to do with the quality or location of the property. Q. Why do lenders resell loans and why does this make a difference? Gena: The secondary loan market is set up for residential properties for primary residences, second homes, and investment-and there are guidelines to determine what properties qualify. If a property doesn’t qualify, the lender cannot sell the loan through one of the agency entities (Fannie Mae – Freddie Mac). Lenders can still make money on loans they can’t sell (such as they do on commercial loans). However, since they tie up assets for potentially long time periods, the returns (interest rates) generally must be higher to justify these. Problems arise with inexperienced lenders because many resort like condos are somewhat commercial in nature. They have onsite rental desks, daily maid service (like a hotel), onsite restaurants, etc. These are considered by many buyers and most visiting vacationers to be positive factors. Unfortunately, secondary loan market guidelines cause these type properties to be categorized as a “condotel” and therefore ineligible for the secondary loan market. This is what typically causes a residential loan on a condotel through an out-of-area lender to be denied at the last minute. Q. Does this mean there’s nothing really wrong with a condotel? Gena: There is nothing wrong with condotels just as there is nothing wrong with restaurants, hotels, office buildings or any other properties that could typically be described as “commercial” in nature. As previously stated, many of their characteristics actually may make them more desirable to a second home owner than a detached house. Q. Are the same loan programs available for all condotel buildings? Gena: No. Available loan programs can vary significantly from one building to the next. Relevant factors may include the service level and the precise location of the rental desk (inside the building or not, for example), the size and configuration of the individual condominiums and whether or not there are timeshare units in the complex, just to name a few. Also, if a buyer already owns another property along the coast this could affect the loan. As noted, interpretations also vary over time and from lender to lender. Q. Are terms and interest rates the same for condotel loans as they are for primary residence loans? Gena: Interest rates are sometimes slightly higher than rates for primary home loans and a larger down payment is sometimes required. Also, 30-year fixed rate financing is typically not available. The reason is that lenders consider these to be riskier loans than those for primary residences. If a borrower experiences financial difficulties, they will stop paying on their second home or investment loan before they stop paying for the roof over their head. Even more importantly, since these loans are typically not sold, any profit the lender makes is based on the “spread” between the interest rate charged to the borrower and the interest rate available to the lender. And since this is the case for the life of the loan, lenders want the rates to be able to adjust as prevailing interest rates change. Q. Are condotel loans risky for the lenders that specialize in them? Gena: In our area at least, these loans have historically had very low default rates. Most of the Buyers are relatively affluent with strong assets and reserves. They also typically have good credit scores which they will go to great lengths to protect. Of course during times of hardship such as the recent recession, defaults increase as they do with other types of mortgages. Q. Does it matter which of the local lenders I choose to finance my resort condo purchase? Gena: Yes, not all of our local lenders can provide financing for all properties. Lenders, like most service providers, often specialize and some do not have programs for condominiums. Q. Condos are obviously not as easy to finance as detached houses. Should I be worried that there won’t be available financing when and if I try to sell my condo? Gena: Through the year’s working with condos, there has always been reasonable financing available for qualified buyers although the lineup of the “best” local lenders has changed frequently. This is a lucrative market for lenders and with baby boomers expected to buy millions of second homes in the coming years; it is unthinkable that no lenders would choose to take advantage of that opportunity. Q. Is it ever OK to use a lender who does not have resort condo experience? Gena: Yes of course, a “Signature” Loan- In other words, your position with the lender is so strong that your signature will get you a loan regardless of why you’re borrowing the money. The lender is treating this as a ‘portfolio” loan which it does not intend to sell. Commercial Loan- Some buyers put down more money and structure these as commercial loans. There still could be problems if the lender is not familiar with our market. Q. What if I carefully consider all factors and still decide I don’t want Condotel financing terms? Gena: The easy answer is to simply buy in a property (Condo) that is eligible for conventional financing (Warrantable Condo it meets Fannie Mae guidelines). There are plenty in our area. Ask me to help you find these properties. The rules are confusing and the list of eligible properties changes frequently as rules are periodically changed or as interpretations change. The other solution is to pay “cash”. This is not necessarily as difficult as it sounds. Many “cash” buyers actually just borrow against some other asset which gives them more favorable terms. Home equity loans, leveraged stock portfolios, etc. Q. This sounds so complicated—how will I learn all this? Gena: Good news you don’t have to. Your experienced agent who works with condos can help you. Experienced condo agents constantly monitor the local competition so that they can help their clients connect with some local lenders that can service their needs. |
www.sowal30a.netGena Bolton
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