Florida Mortgage Lenders
Rec lease communities… props held in fee simple. Perfect For Florida Senior Communities with Recreational Leases like Country Manor, Century Village, Omega, Etc.
Primary Home: Maximum 90% LTV
o Max LTVs for jumbos are as follows:
Maximum 80% LTV up to $1,000,000
Maximum 75% LTV for $1,000,000 – $2,000,000
Maximum 70% LTV for $2,000,000 +
- A long-term lease between a homeowners association (HOA) and a third party
- Gives access to recreational facilities for a set period of time
- Allows specific uses of the land for a set period of time
- Can include activities like hunting, fishing, camping, horseback riding, snowmobiling, and cross-country skiing
- Have a written contract that clearly states the rights and duties of both parties
- Anticipate potential problems and describe how each would be resolved
- Set realistic expectations
- Understand what to expect before signing any contract
- Talk to leasing companies about average lease rates in your area
- Look for companies that prioritize landowners
Recreational Lease Properties
Recreational lease properties will be reviewed on a case-by-case basis. Generally, the lease must be subordinate to the mortgage
and the term must equal or exceed the term of the loan. Required documentation include a copy of the lease and
confirmation how the lease payment is made (typically paid through HOA). Additional documentation may be required.
• This product guide describes guidelines and requirements for the following loan programs:
o Fully Amortizing 3/1, 5/1 and 10/1 Treasury ARMs
• All loans must be manually underwritten and fully documented.
• Loan is subject to Pre-Close Eligibility review completed prior to final approval.
• All loans must close in the United States.
• Prior to the loan being registered, the customer must submit their scenario to their Account Executive (AE). The
AE will submit the information to the TPO scenario desk for review. The scenario documentation will be sent to
the investor for further review prior to loan registration to ensure the scenario is viable. Please allow 48 hours
for review. The scenario review requires the following documentation:
o Completed C.H.A.I.R form aka FBC Flex Loan summary cover letter
o 1008
o URLA (all assets must be listed on URLA)
o Credit Report
Loan Purpose
• Purchase
o The LTV will be based on the lower of the purchase price or appraised value.
• Rate-Term Refinance & Cash-Out Refinance
For non-seasoned Refinances there is no seasoning requirement. Refinance can occur upon recording of
ownership documentation. If the refinance occurs less than 12 months after purchase, the LTV will be
based on the lower of the purchase price or appraised value. An exception to this would be if the owner
made significant improvements to the property which can be documented.
Compliance Requirements
For all loans, including foreign national loans, made to borrowers under this program must demonstrate and document
the ability and capacity to repay the debt, satisfying ATR requirements.
Qualified Mortgages (QM) and Non-Qualified (Non-QM) loans are available for qualified borrowers.
Maximum Debt to Income (DTI)
The maximum DTI is 45%.
The DTI will be held to a maximum of 40% if no primary housing debt is included in the DTI due to the mortgage and/or
property owned by non-borrowing spouse. If the borrowing spouse is on title but not on the mortgage, include taxes,
Occupancy
Every effort must be made to ascertain whether the occupancy status of the property as represented by the borrower(s)
is reasonable.
Eligible occupancy:
• Owner-Occupied
• Second Home
• Investment Property
SmartEdge HIGHLIGHTS:
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Loan amounts up to $3,000,000
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LTV up to 90%
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Minimum credit score of 660
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DTI up to 50%
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Only 2-4 year seasoning for serious derogatory credit events
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Purchase, Rate & Term or Cash-out Refinance available
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Non-Warrantable condos permitted
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Use asset amortization/depletion to qualify
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30-year Fixed Rate and 30-year IO Fixed Rate
