If you are looking for a Panama City Beach condo, loan options may be different than you would expect for a secondary residence. I have written the following article, Condominium loans in Panama City Beach, to explain why. The article's main point is that qualified buyers who put at least 20% down can get a 5-year ARM or a 15-year fixed-rate mortgage. As of February 2017, qualified buyers can expect to get a 5 year arm amortized over 30 years with a rate of roughly 4.5%.
Update: July 2017: Normal condo loans are available at Calypso again.
In October 2016 Calypso was added to the no lend list for the banks that finance condos in Panama City Beach. One of the considerations for providing normal condo loans to gulf front condominiums in Panama City Beach is pending litigation. Any litigation banks feel could severely impact a condominium association can cause condominiums to be added to this list. In October of 2016 the bank that buys the majority of the Panama City Beach condo loans on the secondary market added Calypso to this list.
Tax reports from the TDC (Tourist Development Council) showed a 40% decrease in March tax revenue for 2016 compared to the prior year. Hotels and rental management companies are forecasting even lighter spring break traffic this year. What was previously considered a peak rental month is now another quiet rental month for many condo owners in Panama City Beach.
This is a very touchy issue in Panama City Beach. I just thought it would be helpful to present the data for condo owners.
As times change, so do condominium loans in Panama City Beach. The reason is because most buyers are people who purchase these properties as secondary residences or investment properties. The type of loans that banks grant for secondary residences are different from those offered for primary residences especially after the mortgage meltdown of 2008. Before the mortgage crisis, most lenders sold their condominium loans to Fannie Mae, Freddie Mac and any other bank or financial institution that was willing to take them on the secondary market.
The Panama City Tourist Development Council has voted to recommend the Weeks Marine company be awarded the beach renourishment project. On January 4, the council voted to approve the company for the project and increase the project budget to $17 million, up from $12 million. The final vote will be held by the Bay County Commission.
The project will add 900,000 cubic yards of sand to four beachfront areas, including Pinnacle Port, the Calypso condominium to the Tidewater Beach Resort area, Treasure Island Resort Condominiums, and the County Pier/Chateau Motel area. Work is expected to begin early in the spring with a projected May 1 completion date.