Can You Finance a Condo in Orange Beach, Alabama?
By Meredith Amon, Licensed in Alabama and Florida
What Buyers Need to Know in 2025
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If you’ve been browsing the Gulf Coast real estate market and thinking about buying a condo in Orange Beach, you’re not alone. Interest remains strong for beachfront condos, investment properties, and second homes with Gulf views. But one of the most common questions I hear from potential buyers is this:
Can I finance a condo in Orange Beach in 2025?
The answer is yes—but with a few caveats. Condo financing at the beach isn’t as straightforward as financing a traditional home, and I want to help you understand why.
Why Financing Orange Beach Condos is Complicated
Many condos along the coast fall under what’s called a “non-warrantable” classification. That means they don’t meet the conventional lending guidelines set by Fannie Mae and Freddie Mac. Here’s why:
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High number of investor-owned units
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Short-term rental activity or front-desk check-ins
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Insufficient HOA reserves or ongoing litigation
If you’re looking at a condo that operates like a hotel or allows nightly rentals, most traditional lenders won’t be able to offer you a loan—and that’s where portfolio lending comes in.
What Is a Non-Warrantable Condo?
A non-warrantable condo is simply one that doesn’t meet standard financing criteria. This doesn’t mean there’s anything wrong with the property—it just means you’ll need a lender who keeps the loan in-house instead of selling it to the secondary market.
Key features of non-warrantable condos:
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Short-term or vacation rental use
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Front desk or resort-style services
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More than 50% investor ownership
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Insufficient insurance or HOA coverage
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Who Can Lend on These Condos?
The good news is there are portfolio lenders and local banks that understand our coastal market. Contact Meredith for a list of preferred mortgage partners who work with buyers to offer solutions for condo financing—even when traditional lenders can’t.
Most portfolio loans require:
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30% down payment
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Higher interest rates
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Stricter underwriting
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Sometimes shorter loan terms
These types of lenders are ideal for serious buyers who want to own in a top building like Turquoise Place, The Caribe, or Admirals Quarters—even when those buildings don’t qualify for conventional loans.
Other Financing Options to Consider
If you’re not going the portfolio loan route, there are still a few options:
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Cash purchase: If you’ve sold a previous property or are using a 1031 exchange, this can be a seamless transaction.
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Seller financing: Occasionally available from individual owners or developers.
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Home equity lines: A great tool if you have equity in another property you already own.
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What Smart Buyers Do Differently
When working with me, I help you go beyond the listing photos. I encourage my clients to:
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Get pre-qualified with the right lender upfront
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Review condo financials and reserve studies
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Ask about special assessments and insurance policies
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Understand rental history and HOA rules
These are the details that can make or break your transaction.
Orange Beach Condos That Are Easier to Finance
While many beachfront condos are non-warrantable, some are easier to work with than others. I keep a running list of:
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Condo complexes with stronger HOA reserves
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Buildings with more full-time residents
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Properties that may qualify for limited review loans
If you'd like my most up-to-date list, feel free to reach out. You can also browse available Orange Beach condos and boater-friendly properties directly on my site.
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I’m Here to Help You Navigate It All
Financing a condo at the beach doesn’t have to feel overwhelming. As a Gulf Coast real estate advisor and full-time resident of Orange Beach, I’ve helped buyers from all over the country secure the right loan, connect with the right lender, and close on their dream property with confidence.
If you’re thinking about buying a condo and want expert guidance on what to watch for, I’d love to be a resource. Let’s make your coastal property goals a reality.
Meredith Amon is a Gulf Coast Expert Real Estate Advisor, licensed in Alabama and Florida. She specializes in helping buyers and sellers navigate the buying and selling of homes along the Gulf Coast.
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