Is it worth buying a condo?

[wizrap]

Originally Posted by Alfiehurt

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I had the same issue getting pre-qualified for a small mortgage

I got pre-approved by Space Coast Credit Union

What worries me now is not being able to get home insurance even with a small mortgage where i have 75% down payment in cash

Congrats on the pre-approval by Space Coast. They also approved a small mortgage ($100k) nearly 8 years ago for us too.

Are you working with a realtor? Reason I ask is that our realtor recommended a local insurance agency to underwrite our homeowners insurance which was a great referral.

Worse case, the insurer of last resort is Citizens. So there’s always that.

[blueskies2023]

Originally Posted by wizrap

Congrats on the pre-approval by Space Coast. They also approved a small mortgage ($100k) nearly 8 years ago for us too.

Are you working with a realtor? Reason I ask is that our realtor recommended a local insurance agency to underwrite our homeowners insurance which was a great referral.

Worse case, the insurer of last resort is Citizens. So there’s always that.

I don't know. What I do know is that this whole thing is becoming out of control, out of hand ridiculous. It is just sad.

[Alfiehurt]

Originally Posted by wizrap

Congrats on the pre-approval by Space Coast. They also approved a small mortgage ($100k) nearly 8 years ago for us too.

Are you working with a realtor? Reason I ask is that our realtor recommended a local insurance agency to underwrite our homeowners insurance which was a great referral.

Worse case, the insurer of last resort is Citizens. So there’s always that.

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Not yet since we're not looking to move until July
I am open to recommendations if you know of a local company
I did not think i needed to look for one until I actually got an offer accepted

Regards,

[wizrap]

When we sold our home in Weston, we used Debbie Bates of Coral Shores Realty: 954-557-7036. She was great. She even found a realtor for us in Gainesville who we used to rent a home, and then eventually buy.

Our buyers also ran into an insurance situation, and this was about 10 years ago, so I can’t imagine what the market is like now. They were represented by a different realtor, and Debbie worked with her to find insurance for them. Looking back, the insurance market was starting to show several cracks even then.

Our buyers had to scramble to get insurance because the company that insured our home refused to do so due to the age of our roof. We had had Universal for a long time and every one thought they would just continue with the insurance under new owners. Wrong assumption.

Nothing wrong with giving Debbie a call. She should know what’s going on; even if she tells you that you’ll need to use the insurer of last resort, Citizens, then at least you know. I don’t even think it’s too early to start working with a realtor.

Good luck!

[NYTom]

I would be paying cash, so I don't care about interest rates, and if insurance is going to be too much of a headache I might just go without it.

[wizrap]

Originally Posted by NYTom

I would be paying cash, so I don't care about interest rates, and if insurance is going to be too much of a headache I might just go without it.

I spoke to a couple of clients of mine last week, and that’s exactly what they are considering. One already has paid off his mortgage, the other is thinking of doing that and then “going bare.” One lives in eastern Broward County, the other in the western half.

[Alfiehurt]

Originally Posted by NYTom

I would be paying cash, so I don't care about interest rates, and if insurance is going to be too much of a headache I might just go without it.

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I have considered doing that

I already have 75% of down payment

I would consider taking a 401k plan loan plus selling some mutual funds to make up for the rest

The only thing that made me think about it twice was comparing an average 6.25%-6.75% 10 yrs mortgage interest rate with a average 8% to 9% mutual funds/401k plan investment return BUT on the bright side, I would not have worry about refinancing (if i though of it) and I would also skip insurance all together and if I retired earlier than 10 years then I would just default on the 401k plan loan and that's it, since I will be paying the loan to myself plus 9% interest

Just the though of going through another mortgage process again gives me anxiety

I appreciate the feedback

[Angel Calzadilla]

Originally Posted by City Guy997S

Banks also don't want small loans. I helped a relative buy a 75K condo and 50K loans were tough to come by. The banks don't want to get stuck with a condo and its hoa fees/assessments if the buyer defaults/dies and they are not making any money from the low interest on a 50K loan.

Banks don't loan for less than $100,000 to purchase residential Real Estate.

[Alfiehurt]

Originally Posted by Angel Calzadilla

Banks don't loan for less than $100,000 to purchase residential Real Estate.

You need to go through local credit unions to get anything between 50K and 99K

[Alfiehurt]

I'll tell you this much
as a rule of thumb, I would not buy a condo that hasn't pass teh 40/50 re-certification!