Mortgage Blog

Marco Island Condo Mortgage

Condominium financing is oftentimes a challenge since lenders require additional information including homeowner’s association paperwork. Common problems that may make a Marco Island condo financing more challenging is the percentage of owner-occupied units in the development. Some of the challenges of securing condo loans include:

  • Owner-occupancy – Most lenders require at least 50 percent of the development be owner-occupied. When applying for a condo loan, it’s important to know that if the condo development is less than 50 percent owner-occupied, you may have to put down more than 20 percent. This will be verified through the condo home owners association through the condo questionnaire that needs to be completed.
  • Investor participation – Lenders also check to see if any single investor owns more than 10 percent of the development. While this is not always problematic, it may cause delays with your financing.
  • Commercial development – Some condos have portions that are considered commercial such as store fronts or office space. While this may not completely ruin your chances to getting condo financing, it may make it more challenging.
  • Pending litigation – Existing tenants or outside parties may be sueing the condominium association. This can make getting a Marco condo loan next to impossible. Lenders do not like the idea of investing in a property where there may be a loss due to litigation.
  • Association finances – One of the questions that a condo lender will ask about is the amount of reserves that the homeowner’s association has on hand. There must be a sufficient budget to cover required grounds maintenance, any repairs on common areas and other usual expenses. This amount is typically set for 10 percent of expenses. The association must also have a bond that covers them in the event of financial loss due to theft.


Some lenders will not make a Marco Island condo loan on units in a development that has not been approved by the FHA. The FHA does not approve single units, rather they approve the entire development. Fortunately, Core Mortgage Financial can help you find condo mortgage loan. We’re here to help you find the loan program that works best for you and get through the additional document requirements.

Call our office today, we will explain in detail how you can obtain condo loan.  239-514-2674 or Get a Mortgage Quote Today !


This blog is for informational purposes only. Rates, programs, guidelines are subject to change without notice. NMLS #1743702


Need a Quote?

Our Loan Specialists will give you the best quote possible and answer any questions you might have. 

Get A Quote