Refinancing your condo in Panama City Beach

Many Panama City Beach condo owners who purchased their property from 2004 to 2009 want to refinance their condominiums. Since most banks do not provide loans for the area's condos, consumers do not know where to seek refinancing. Often, lenders, who are usually inadequately versed in condominium financing, give property owners incorrect information. Then, lenders encourage credit worthy condo owners to apply for a refinance, which is later turned down by the underwriters. As a Panama City Beach condominium owner, you need accurate information and knowledgeable lending contacts, so you can get your property refinanced.

This article specifically covers refinancing.  If your considering purchasing a condominium, you may want to read our article on Condominium loans in Panama City Beach.

Why do many banks decline condominiums refinances?

The majority of condominium buyers are people who purchased condos to use as investment properties or secondary residences. Prior to the mortgage collapse in December 2007, many lenders sold their condo loans to any financial institution, including Fannie Mae and Freddie Mac, that had loan programs available for secondary residence and investment condos.  Since 2008, most of the secondary market avenues once available to lenders are now gone. It is even unlikely to receive a refinance from the bank where your condo mortgage is currently held.

Why do lenders say they can refinance my condo, but decline me after I apply?

Although each refinancing case is unique, allow me to make a few general assumptions. First, I assume that you are a loan applicant who has a solid credit history, an excellent debt-to-income ratio and no more than three property loans. With these assumptions in mind, the majority of lenders possess knowledge that does not extend much further than primary residence loans. These lenders lack the understanding or loan programs needed to provide condominium loans.  Therefore, lenders often give inquiring consumers wrong information and allow them to apply for a refinance. In turn, potential borrowers are declined by the underwriters because the borrowers did not meet the requirements for the loan programs they do have.

Who does do refi loans on condos in Panama City Beach?

To make a very long story very short, Gulf Bank and Regions Bank.  They do loans for most condominiums in Panama City Beach.  These two banks actually have loan programs for these types of loans.  These loans stay on their individual balance sheets and are not resold to other banks. 

Gulf Bank appears to have the best rates for owners who rent there condo.  Regions Bank provides the best rates for condos that are not rented.

For owners who rent there condos, these two banks are offering 70% LTV.  Please pay close attention to the LTV or Loan-To-Value.  Many owners looking to refinance purchased with 20% down but at a higher price than the current value of the condo.

Example:  If your condo is worth 250k, they would loan you up to 175k or 70%.  If this individual owed more than that on their current loan, they would have to pay down the excess amount.

For owners who do not rent there condos, Regions bank has great rates and provides 80% LTV.

What loan programs are available for refinancing your condo?

Gulf Bank

You are going to need a 710 or better credit score, a good Debt-To-Income ratio, and less than four financed properties.

If you are using the condo as a second home or a rental

You loan to value on this type of loan is 70%.

• 15 Year Fixed Rate - around 5.125% with 1/2 point
• 10/5 ARM (30 year term fixed for 10 years) around 5.375% with 1/2 point
• 5/5 ARM (30 year term fixed for 5 years) around 4.375% with 1/2 point
• 3/3 ARM  (30 year term fixed for 3 years) around 4.125% with 1/2 point

If you have a 760 credit score your rate drops .125%.  If you have a 790 credit score your rate drops another .125%.
After the fixed periods the loans adjust to the index (which is the Fannie Mae 12 month yield).  The margin is a minimum of 2% with a max on the first change of 2%. The 6% is also the annual /life cap rate too. There is no floor.

You can get more information on the loans at Gulf Bank by contacting

Kristen Blossman

850.654.1994  office

850.585.3335  cell

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Regions Bank

You are going to need a 710 or better credit score with a good Debt To Income ratio.

If your renting your condo

The rates are higher for investment properties.  Investment properties are considered any condo that is rented.  This type of loan requires a 70% loan to value.  This means your loan can not be for more than 70% of what your floor plan is currently selling for.

• 15 Year Fixed Rate - around 5.875% No Points
• 10/5 ARM (30 year term fixed for 10 years) around 6% No Points
• 5/5 ARM (30 year term fixed for 5 years) around 5% No Points
• 3/3 ARM  (30 year term fixed for 3 years) around 4.75% No Points

If you are using the condo as a second home

This means you are not renting your condo.  The bank determines rentals by looking at your tax returns.  You loan to value on this type of loan is 80%.  The interest rates are also lower.

• 15 Year Fixed Rate - around 4.625% No Points
• 10/5 ARM (30 year term fixed for 10 years) around 4.875% No Points
• 5/5 ARM (30 year term fixed for 5 years) around 3.75% No Points
• 3/3 ARM  (30 year term fixed for 3 years) around 3.50% No Points

You can get more information on the loans at Regions Bank by contacting

Hunter Palmer

850.896.7710  cell

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