Special Financing for mahogany Bay and the Pier

LOT LOANS: Marine Bank offers a 4.99% rate for 5 years (no points) to any qualified buyer of a Mahogany Bay or Pier lot. Payments would be based on a 15 year amortization. The loan will balloon at the end of the five year period. The maximum loan advance under this program is the lesser of 75% loan-to-value or loan-to-cost. In cases where the loan amount is the lesser of 60% loan-to-value or loan-to-cost, the loan will be interest only during this five year period.

Yes. The 4.99% is fixed for 5 years. The loan would then balloon. As lot loans, we want them to build. By having a legal maturity, the borrower either has to go through the pain of a refinance or start building.
This program is intended for highly qualified borrowers. Though each application will be considered on its on merits, we do not envision credit scores below 700 would qualify for this rate, and generally would expect something above 725. If someone has a 680 score and $10,000,000 in Marine Bank, we might make an exception.
Yes, you can tell your agents about the program, but this financing is only good for sales that close within 90 days, and can be withdrawn at any time. We do not expect much change in rates over the next few months, but if they do, we will pull or modify this program. Once we have committed a rate, however, they are locked in for 30 days.
International buyers generally require more down payment. However, I didn’t anticipate the question. If we can underwrite them (they have fairly strong credit reporting systems in Canada, England, Germany and France), then we could probably go 75%, but if they are from a country where independent credit histories are hard to determine, it will be tough to make the deal in any case.
Yes, participating brokers can be pitched the deal.

we would offer the following on the models:

Option 1: The rate is fixed at 4.99% for a period of 5 years after which in the 6th year the loan becomes a one-year adjustable rate mortgage (ARM). The adjustable rate is tied to the 1-year treasury index, and is added to a 3% margin to arrive at your new annual rate. Each year thereafter, the rate adjusts based on the index and the margin. The loan is fully amortized (or paid off) in 30 years if the normal payment schedule is followed. The loan amount cannot exceed the lesser of 75% loan to value or loan to cost.

Option 2: The rate is fixed at 5.99% for a period of 7 years after which in the 6th year the loan becomes a one-year adjustable rate mortgage (ARM). The adjustable rate is tied to the 1-year treasury index, and is added to a 3% margin to arrive at your new annual rate. Each year thereafter, the rate adjusts based on the index and the margin. The loan is fully amortized (or paid off) in 30 years if the normal payment schedule is followed. The loan amount cannot exceed the lesser of 75% loan to value or loan to cost.

Option 2: The rate is fixed at 4.99% for a period of 5 years after which in the 6th year the loan matures (balloons). Interest only is billed monthly during this 5 year period. The loan amount cannot exceed the lesser of 60% loan to value or loan to cost.


Thanks,

Hunter Padgett, Marine Bank
11290 Overseas Highway
Marathon, Florida 33050
PH: (305) 743-4895
FX: (305) 743-7585
Cell: (305) 240-2265
1-800-955-0615