General discussion & info about South Walton, Florida.

All About SoWal

Advertise or find a business, discuss business.

Business & Services

Jobs

Festivals, classes, gatherings, activities.

Events & Music

Food & Dining

Marketplace

property, realtors, builders, development, infrastructure ...

Real Estate

For Sale

Wanted

Other

Commercial

Long Term Rentals

Vacation Rentals

SoWal Lounge

TooFarTampa

SoWal Insider

They are really hard to get.

The best deal we could find a couple of months ago (right before the credit market began imploding) was 7.25 percent through Huntington Mortgage. Their service was good and everything went smoothly. They wanted either 80 or 90 percent loan to value, I can't remember. 

We tried a mortgage broker and he was talking about 9 percent. Another broker didn't have anything for us. Wells Fargo was at 8.25 percent I believe with 75 or 70 percent loan to value. USAA was the second best deal (7 3/4 or 8)  but wanted about 70 percent loan to value.

Good luck!

They are really hard to get. 
 
The best deal we could find a couple of months ago (right before the credit market began imploding) was 7.25 percent through Huntington Mortgage. Their service was good and everything went smoothly. They wanted either 80 or 90 percent loan to value, I can&#039;t remember. 
 
We tried a mortgage broker and he was talking about 9 percent. Another broker didn&#039;t have anything for us. Wells Fargo was at 8.25 percent I believe with 75 or 70 percent loan to value. USAA was the second best deal (7 3/4 or 8) but wanted about 70 percent loan to value. 
 
Good luck!

Lisa Ruby

Beach Fanatic

Destin First Bank 269-1201 or Compass Bank 269-6992
Should be able to get 7% or possibly lower.

Destin First Bank 269-1201 or Compass Bank 269-6992 
Should be able to get 7% or possibly lower.

Joe Mammy

Beach Lover

I have a closing tomorrow on a Bayfront lot in Walton County. My clients got good faith estimates from Compass Bank, Sunshine Mortgage, Wells Fargo and Florida Financial Services. 
 
They ended up going with Compass on a 80% LTV 5 year balloon amortized over 180 months for 5.5%.

I have a closing tomorrow on a Bayfront lot in Walton County. My clients got good faith estimates from Compass Bank, Sunshine Mortgage, Wells Fargo and Florida Financial Services. 
 
They ended up going with Compass on a 80% LTV 5 year balloon amortized over 180 months for 5.5%.

[quote="Joe Mammy, post: 509713"]I have a closing tomorrow on a Bayfront lot in Walton County. My clients got good faith estimates from Compass Bank, Sunshine Mortgage, Wells Fargo and Florida Financial Services. 
 
They ended up going with Compass on a 80% LTV 5 year balloon amortized over 180 months for 5.5%.[/QUOTE]

I would stay away from a balloon unless you are sure that you will be able to pay it off in 5 years or that the lot will not be worth less. If it's an expensive lot, it would be rather painful to bring tens of thousands of dollars to your own refinancing.

<blockquote class="xfBb-quote" data-name="Joe Mammy">I have a closing tomorrow on a Bayfront lot in Walton County. My clients got good faith estimates from Compass Bank, Sunshine Mortgage, Wells Fargo and Florida Financial Services. 
 
They ended up going with Compass on a 80% LTV 5 year balloon amortized over 180 months for 5.5%.</blockquote> 
I would stay away from a balloon unless you are sure that you will be able to pay it off in 5 years or that the lot will not be worth less. If it&#039;s an expensive lot, it would be rather painful to bring tens of thousands of dollars to your own refinancing.

Miss Critter

[quote="TooFarTampa, post: 509848"]I would stay away from a balloon unless you are sure that you will be able to pay it off in 5 years or that the lot will not be worth less. If it's an expensive lot, it would be rather painful to bring tens of thousands of dollars to your own refinancing.[/quote]
 
Is a balloon a good idea if you know you will build on it within the 5-year time frame? How are construction loans faring?

<blockquote class="xfBb-quote" data-name="TooFarTampa">I would stay away from a balloon unless you are sure that you will be able to pay it off in 5 years or that the lot will not be worth less. If it&#039;s an expensive lot, it would be rather painful to bring tens of thousands of dollars to your own refinancing.</blockquote> 
Is a balloon a good idea if you know you will build on it within the 5-year time frame? How are construction loans faring?

[quote="MissCritter, post: 509884"]Is a balloon a good idea if you know you will build on it within the 5-year time frame? How are construction loans faring?[/QUOTE]

Don't know anything about construction loans. But if you KNOW you will build, then a balloon is just fine.

We bought a lot five years ago with every intention of either building or selling by the time our balloon loan ended. Things change. We definitely plan to keep the lot, but may not build for 10-15 years.

Refinancing our balloon was a bit tricky because not only did we have trouble finding a non-balloon loan, the lot appraised for a ridiculously low price even by today's standards, 20 percent less than we purchased it for in 2003. The only comps the bank came up with did not have a gulf view, which our lot has. The bank reviewed the appraisal and the refinancing eventually went off without a hitch. But it was still a reminder that a so-called end user without payment issues and acting in complete good faith could get caught in the downward real estate spiral. 

I tell the story just as a warning.

<blockquote class="xfBb-quote" data-name="MissCritter">Is a balloon a good idea if you know you will build on it within the 5-year time frame? How are construction loans faring?</blockquote> 
Don&#039;t know anything about construction loans. But if you KNOW you will build, then a balloon is just fine. 
 
We bought a lot five years ago with every intention of either building or selling by the time our balloon loan ended. Things change. We definitely plan to keep the lot, but may not build for 10-15 years. 
 
Refinancing our balloon was a bit tricky because not only did we have trouble finding a non-balloon loan, the lot appraised for a ridiculously low price even by today&#039;s standards, 20 percent less than we purchased it for in 2003. The only comps the bank came up with did not have a gulf view, which our lot has. The bank reviewed the appraisal and the refinancing eventually went off without a hitch. But it was still a reminder that a so-called end user without payment issues and acting in complete good faith could get caught in the downward real estate spiral. 
 
I tell the story just as a warning.

Beach Runner

beats on hood

Then the next question after getting loans for the lot and construction is how hard is it going to be to find wind insurance if the lot is south of 30-A? I'd hate to have jumped through the hoops of financing and built a house for which I can't get insurance.

Then the next question after getting loans for the lot and construction is how hard is it going to be to find wind insurance if the lot is south of 30-A? I&#039;d hate to have jumped through the hoops of financing and built a house for which I can&#039;t get insurance.

AAbsolute

Banned

[quote="Beach Runner, post: 509890"]Then the next question after getting loans for the lot and construction is how hard is it going to be to find wind insurance if the lot is south of 30-A? I'd hate to have jumped through the hoops of financing and built a house for which I can't get insurance.[/quote]
 
New construction will be wind insurable.
 
You may want to take a lot loan that contains a future advance clause. It's a standard provision that may help you later.  Many times the future advance provision totals twice the lot loan.

<blockquote class="xfBb-quote" data-name="Beach Runner">Then the next question after getting loans for the lot and construction is how hard is it going to be to find wind insurance if the lot is south of 30-A? I&#039;d hate to have jumped through the hoops of financing and built a house for which I can&#039;t get insurance.</blockquote> 
New construction will be wind insurable. 
 
You may want to take a lot loan that contains a future advance clause. It&#039;s a standard provision that may help you later. Many times the future advance provision totals twice the lot loan.

Miss Kitty

Meow

Gives new meaning to the phrase...dirt cheap!

[quote="AAbsolute, post: 509892"]New construction will be wind insurable.
 
You may want to take a lot loan that contains a future advance clause. It's a standard provision that may help you later.  Many times the future advance provision totals twice the lot loan.[/QUOTE]
Thanks for the info!

<blockquote class="xfBb-quote" data-name="AAbsolute">New construction will be wind insurable. 
 
You may want to take a lot loan that contains a future advance clause. It&#039;s a standard provision that may help you later. Many times the future advance provision totals twice the lot loan.</blockquote>Thanks for the info!

wrobert

Are the problems the county is starting to see with incomplete infrastructure affecting the ability to finance yet?  Buying a lot then finding out two years from now the county will not issue you a building permit has got to be a concern of people if they think about it.

Franny

[quote="wrobert, post: 511955"]Are the problems the county is starting to see with incomplete infrastructure affecting the ability to finance yet?  Buying a lot then finding out two years from now the county will not issue you a building permit has got to be a concern of people if they think about it.[/QUOTE]

In this scenario it sounds like this couple bought to build their own home so there should not be a problem with financing. Building spec homes is a whole new ball game.

<blockquote class="xfBb-quote" data-name="wrobert">Are the problems the county is starting to see with incomplete infrastructure affecting the ability to finance yet? Buying a lot then finding out two years from now the county will not issue you a building permit has got to be a concern of people if they think about it.</blockquote> 
In this scenario it sounds like this couple bought to build their own home so there should not be a problem with financing. Building spec homes is a whole new ball game.

[quote="Franny, post: 511956"]In this scenario it sounds like this couple bought to build their own home so there should not be a problem with financing. Building spec homes is a whole new ball game.[/quote]


I guess the scenario I had in mind is the lot is purchased with a five year balloon.  The plan is to build a home in 3 years.  Three years from now when they go to build their home they find they can not get a building permit.  Now they have two years to get this straightened out or the balloon payment is due.  Or they go forward with a construction loan, but I am sure that there are some time limits placed upon that.

I know five years seem like quite a bit but we already have places that have been out of compliance for a couple of years and the county is just now starting to take action against them.  The county attorney stated at the last BCC meeting that the county had no liability in these situations, although others seemed to disagree.

<blockquote class="xfBb-quote" data-name="Franny">In this scenario it sounds like this couple bought to build their own home so there should not be a problem with financing. Building spec homes is a whole new ball game.</blockquote> 
 
I guess the scenario I had in mind is the lot is purchased with a five year balloon. The plan is to build a home in 3 years. Three years from now when they go to build their home they find they can not get a building permit. Now they have two years to get this straightened out or the balloon payment is due. Or they go forward with a construction loan, but I am sure that there are some time limits placed upon that. 
 
I know five years seem like quite a bit but we already have places that have been out of compliance for a couple of years and the county is just now starting to take action against them. The county attorney stated at the last BCC meeting that the county had no liability in these situations, although others seemed to disagree.

[quote="wrobert, post: 511959"]I guess the scenario I had in mind is the lot is purchased with a five year balloon. The plan is to build a home in 3 years. Three years from now when they go to build their home they find they can not get a building permit. Now they have two years to get this straightened out or the balloon payment is due. Or they go forward with a construction loan, but I am sure that there are some time limits placed upon that.
 
I know five years seem like quite a bit but we already have places that have been out of compliance for a couple of years and the county is just now starting to take action against them. The county attorney stated at the last BCC meeting that the county had no liability in these situations, although others seemed to disagree.[/quote]
 
The first home I built in Rosemary Beach had no water or power when we began construction because the utilities weren't to our phase of the neighborhood.  I would think it's not part of reasonable due dilgence to verify the existance of working utilities when you buy a property that has stub-ups visible when you close on the property.  
 
I've seen the same type of situation in the newest phases of other communities here as well.  It will create a liability situation for the Developers, the County and probably Regional Utilities who collects water and/or sewer tap fees at closing as next year unfolds.
 
I remember the HillsByTheBeach thread where she had a client who bought property under an infrastructure bond that expired later leaving the bank and owner with property without ingress/egress.

<blockquote class="xfBb-quote" data-name="wrobert">I guess the scenario I had in mind is the lot is purchased with a five year balloon. The plan is to build a home in 3 years. Three years from now when they go to build their home they find they can not get a building permit. Now they have two years to get this straightened out or the balloon payment is due. Or they go forward with a construction loan, but I am sure that there are some time limits placed upon that. 
 
I know five years seem like quite a bit but we already have places that have been out of compliance for a couple of years and the county is just now starting to take action against them. The county attorney stated at the last BCC meeting that the county had no liability in these situations, although others seemed to disagree.</blockquote> 
The first home I built in Rosemary Beach had no water or power when we began construction because the utilities weren&#039;t to our phase of the neighborhood. I would think it&#039;s not part of reasonable due dilgence to verify the existance of working utilities when you buy a property that has stub-ups visible when you close on the property. 
 
I&#039;ve seen the same type of situation in the newest phases of other communities here as well. It will create a liability situation for the Developers, the County and probably Regional Utilities who collects water and/or sewer tap fees at closing as next year unfolds. 
 
I remember the HillsByTheBeach thread where she had a client who bought property under an infrastructure bond that expired later leaving the bank and owner with property without ingress/egress.

traderx

I am surprised that you were able to pull a permit without utilities to the site. Was that a mistake by the county or typical MO?

[quote="traderx, post: 512003"]I am surprised that you were able to pull a permit without utilities to the site. Was that a mistake by the county or typical MO?[/quote]
 
The County Building Dept. has prerequisites for permits that include Water and Sewer availability letters.  That has a subtle distinction between [I]functioning[/I] services and their [I]availability.[/I]  We have permitted homes with payment of $6,800+ water and sewer tap fees paid and at CO come to find that we had to assemble a shallow well to pressurize our plumbing system for the final inspection.  This happens most in a new phase of a development.  There is quite a difference even in a community's water main that is pressurized and a water main that has been certified by the DEP to deliver water to a home.
 
These types of conditions can mislead the best banks at the point of sale of purchasing a lot, let alone an out of State lot buyer who doesn't possess extraordinary experience levels.  Who would even think to ask, "I see the water and sewer stubs.  Has this system passed its DEP Certifications for use?"

<blockquote class="xfBb-quote" data-name="traderx">I am surprised that you were able to pull a permit without utilities to the site. Was that a mistake by the county or typical MO?</blockquote> 
The County Building Dept. has prerequisites for permits that include Water and Sewer availability letters. That has a subtle distinction between functioning services and their availability. We have permitted homes with payment of $6,800+ water and sewer tap fees paid and at CO come to find that we had to assemble a shallow well to pressurize our plumbing system for the final inspection. This happens most in a new phase of a development. There is quite a difference even in a community&#039;s water main that is pressurized and a water main that has been certified by the DEP to deliver water to a home. 
 
These types of conditions can mislead the best banks at the point of sale of purchasing a lot, let alone an out of State lot buyer who doesn&#039;t possess extraordinary experience levels. Who would even think to ask, &quot;I see the water and sewer stubs. Has this system passed its DEP Certifications for use?&quot;

simmy587

Beach Crab

Hi Wavedreamdave,
 
I am sure bank finance vacant lots. All you need to do is find a legitimate and reliable real state agent to talk get a deal with and know all information you want to know.

Hi Wavedreamdave, 
 
I am sure bank finance vacant lots. All you need to do is find a legitimate and reliable real state agent to talk get a deal with and know all information you want to know.

GreenWaveDave

Are any banks financing vacant lot loans down there right now?

If so, which ones and what kind of rates, LTV's, terms, are people seeing?

Are any banks financing vacant lot loans down there right now? 
 
If so, which ones and what kind of rates, LTV&#039;s, terms, are people seeing?

Lot Loans

Grayton BeachCam

Dune Allen BeachCam

Seagrove Beach SkyCam

Inlet BeachCam

Miramar BeachCam Majestic Sun

Santa Rosa BeachCam

Rockin’ In Paradise with Styx + Friends

DeFuniak Springs Farmers Market

Seaside Farmers Market

Grand Boulevard Farmers Market

Pirates of the High Seas & Renaissance Festival

Cars of 30A At Alys Beach: Event Highlights & Photo Gallery

Sixth annual Run Watersound At Watersound Town Center October 24, 2026

Support Our Parks: The 2026 Friends of Camp Helen Pumpkin Patch Is Open

Annual Events and Festivals in South Walton

International Coastal Cleanup Day Was A Success In South Walton

Merchants Of Alys Beach Announce New Dining & Shopping Options

No beachcams yet

More cams

Include enough context for a reply on the first pass: who you are, what this is about, and anything time-sensitive we should know.

Write a clear note and we will route it fast

SoWal Contact Form

What helps the SoWal team reply on the first pass

Use these links when your request already has a clear destination.

Prefer a direct route before you write?

Use this when you are not sure where your request belongs and need the SoWal team to route it.

Questions, corrections, and quick help

Share newsworthy updates, corrections, community tips, or photography that can improve SoWal coverage.

Story tips, local leads, and photos

Reach the team for business visibility, partnership planning, or other commercial opportunities.

Listings, sponsorships, and business requests

Use this path for media coordination, press follow-ups, or requests that need a communications contact.

Press outreach and interview requests

Tell us what you need and how to reach you.

Send your note here and the SoWal team will route it appropriately.

Choose the quickest route for your message

Forum account areas

Log in to view member profile, alerts, messages, watched content, bookmarks, preferences, and staff tools.

Member-only forum areas use your SoWal forum account.

Use your forum username or email to post, reply, follow threads, and manage your account.

Log in to the forum

Log in to the SoWal forum

Find people and visit their public forum profiles.

Members

Enter the six-digit code sent to {email}.

Check your email

Join the conversation

Welcome to SoWal

Sign in to SoWal

Signature preview

Ads support our local stories, BeachCams, and community guides. If you use an ad blocker, allow SoWal, then check again.

Help keep SoWal local

Your feedback helps us make SoWal better.

How was this story?

Get local stories, events, and South Walton highlights in your inbox.

Stay close to the coast

Choose whether SoWal may use optional cookies. Necessary cookies keep the site working.

Your privacy, your choice

Site navigation

Submenu

Bite-sized stories, curated itineraries, and community events delivered to your inbox on the regular.

Lot Loans

Latest conversations

Write a reply

Cars of 30A At Alys Beach: Event Highlights & Photo Gallery

Sixth annual Run Watersound At Watersound Town Center October 24, 2026

Support Our Parks: The 2026 Friends of Camp Helen Pumpkin Patch Is Open

Annual Events and Festivals in South Walton