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Buying a Condominium in Florida

When purchasing a condominium in Florida you are provided a three day right of rescission from the day you receive all the condominium documents.  This is to provide you an opportunity to review all the rules, regulations, ownership, and budget for the condominium.  They are nonnegotiable items so it is pretty much a “take it or leave it” proposition.

The availability of financing affects the market price of all real estate.  So whether you are paying cash or financing your purchase you should be aware of some of the financing issues associated with purchasing a condominium in Florida.

In order to get conventional financing the condominium must meet certain conditions.  Some of these conditions include

• The condominium cannot have an onsite rental office
• No more than 15% of the units can be more than 30 days late with their dues
• The minimum rental period  Cannot be less than 30 days
• No more than 10% of the units can be owned by one person or entity
• There can be no pending litigation
• There must be adequate reserves

This does not necessarily mean you cannot get financed under these conditions.  You may have to seek some sort of portfolio or private investment mortgage money to finance a purchase.  Expect higher down payment ratios and higher rates even for well qualified buyers.

The overall effect to owners is a smaller pool of buyers that can take cash or are willing to finance their purchase under these conditions.  Fewer buyers may mean a lower market price.

These finance conditions are fluid so check with us if you have any concerns or questions.