On new transactions written, financing is still available with little to no difference in pre-hurricane terms or conditions. One of those conditions required by all lenders is insurance. This is the area where some difficulty may be encountered. The after effects to the insurance industry have yet to be seen and probably will not be seen until spring. At that point most of the insurance companies will have settled the majority of the claims and have had opportunity to assess the cost to them. Once the losses have been evaluated we can expect to see some posture shifts as to what insurance policies may or may not be issued, and more importantly the cost of the policies to be written.
Provided there is not adverse affect from insurance companies and or governmental bodies, it is expected that all financing options available prior to the hurricane will continue to be available. Fixed rate condo loans for second home buyers, with financing up to a 90% loan to value, as well as all the jumbo programs for waterfront properties offered by Access Mortgage remain unchanged.
Note: A second home is considered such when a buyer does not already own a home in the immediate area of the proposed property, provided they intend to use the property at least two weeks a year. Contrary to common belief, there is no prohibition of renting a second home. An example; A prospective buyer wishes to purchase a condo on Pensacola Beach, he lives in Pensacola and owns only his primary residence, this purchase should be treated as a second home purchase if there is the intent to use the unit purchased on occasion throughout the year. If it is on a rental program the balance of the year it remains acceptable as a second home purchase. By classifying a transaction as a second home purchase, preferable financing terms are available to a buyer with higher loan to values allowing lower cash requirements to complete the purchase.