The second year anniversary of Hurricane Harvey is approaching this August and although Port Aransas is pretty well restored and looking better than ever, the condominiums seem to have suffered the most. With some developments still lacking in roofs, dry wall and large special assessment fees on top of not being able to generate rental income, it has left some condo owners wanting to sell. This creates an interesting type of "fire sale" situation in some cases, and can lend itself to needing different types of financing if the buyer is unable to pay cash.
In Port Aransas we have many different types of properties. Some looking like townhomes but that are referred to as condominiums and then there are the condo units that run similar to hotels, often called "condotels". Each of these fall under different potential financing terms. The key to successfully financing something like this is dealing with a local lender. They know the answers to the many special circumstances that can arise with the purchase of a condo on the Texas Gulf Coast.
For example, a straight 30 year conventional loan may not be eligible for purchase on a condotel. You may have to consider a 15 year ARM with much larger down payment, even as high as 30%. Or depending on the current state of the property post Harvey, if it's still under construction the lender may not allow it at all. There are many variables when trying to take advantage of a post hurricane deal.
Here are three pieces of advice if you're interested in purchasing a condo in Port Aransas.
- Talk with a local lender and get pre-qualified! They will be able to guide you through your options or limitations.
- Discuss with HOA if there may potentially be some unexpected special assessment fees tacked on in the future.
- And of course, deal with a local Realtor. They can give you referrals to lenders, title companies and ensure all the right questions are being asked on your behalf!