What are common financing pitfalls I should anticipate in 30A deals?

One of the most common financing pitfalls in 30A real estate is assuming a pre approval guarantees a smooth closing. Luxury and coastal properties often present unique challenges that can impact financing late in the transaction.

According to Spears Group advisor Kristina Hutchison, appraisal issues are among the most common obstacles. With many 30A homes being highly customized, finding comparable sales can be difficult, which may result in a lower than expected appraisal. Insurance can also create surprises, particularly for Gulf front and coastal properties where premiums may affect a buyer’s loan qualification.

Kristina also advises buyers to understand lender requirements for investment properties, cash reserves, and second homes. Many luxury lenders require significant assets to remain in the bank after closing, and rental income is not always treated as buyers expect during underwriting.

The key is identifying potential issues early. With extensive experience in luxury, investment, and new construction transactions, Kristina Hutchison helps clients navigate financing challenges before they become deal threatening problems, creating a smoother path to closing on 30A.