News Release Part 3 of 3By Jim Pendleton - Mr MortgageTM
You'll find other non-warrantable traits, too, including failure to meet certain pre-sale
requirements and length of time that the condo board may be in control in the creating.
The presence of any of these characteristics instantly renders the developing
"non-warrantable" and precludes building owners from securing conventional mortgage financing. This fact can
surprise house owners who may possibly otherwise be well-qualified.
Very good credit, excellent income, very good down payment -- it doesn't matter one particular
bit. The government's not going to insure your loan if your unit is non-warrantable, hammering home just one
on the most essential New Lending Truths from the last two years.
It is not just about the buyer anymore; it's about the constructing,
The same set of rule applies to another kind of condo classification; a single that's normally
associated with luxury and vacationing. The condotel.
Condotel can be a portmanteau from the words "condominium" and "hotel". It describes buildings
utilized as both a apartment and a hotel, with owners keeping the rights to rent their units while they're
not actually utilizing them. Most usually, condotel rentals are managed by an on-site rental
A typical condotel arrangement will be in say, Veil, where a family owns a unit in a condotel
constructing around the mountain but only visits Veil 6 weeks per year. During the other 46 weeks, the
on-site rental company rents the unit like a "hotel room" to other Veil vacationers.
There are many other example of such set-ups that can be found through out the country.
We cover them all.
Like non-warrantable condos, condotels cannot be financed through Fannie Mae or Freddie
Mac. Unfortunately more often typically than not, condotel buyers have found themselves up a
creek; ready to close but unable to find financing.
Thankfully, mortgage money is emerging for condotels and non-warrantables.
For more info call 631-451-7400 or APPLY HERE.