Buying a Condo in Tampa? Pros and Cons..

[Krystof Pilisiewicz]

Hi Everyone, I wonder what are your thoughts on buying a congo in the Tampa area and renting it out. I am planning to do this but my mortgage lender said that when comes to condos they require a 30% downpayment because of the foreclosures they had in the past. He advised me on NOT go with this plan. 

However, I want to hear from you what you think of this? Any landlords that rent out condos can advise on their experience?

Thanks!

[Nick Belsky]

@Krystof Pilisiewicz

Your lender is probably wanting 25-30% down to avoid a full review.  If you are looking at a Fannie/Freddie backed loan, the condo will be subject to either a full or limited review.  If the condo development is on Fannie's approved list, getting a limited review is much easier.  If it is not on the list, or you aren't putting the 25-30% down, then you may have to go through the full review which is quite arduous to say the least.  

Private lenders don't require as much down and some don't require any reviews at all.  They are treated much like a normal purchase.  Expect 80LTV for an investment condo and rates only run a little higher than on a normal purchase.  Every lender is a bit different for the condo pricing adjustment.  

You may want to speak with a mortgage broker to see what options are available to you as well.

Cheers!