Rental Property Investor · Denver, CO · Member since 2014 · 55 posts · 21 votes
Hi-- question for the lending community. Do fixed (15 or 30 year) mortgages exist for non-warrantable condos (>50% non-owner occupied). I currently have a 7-year ARM on a nice 1-bedroom condo in a great, appreciating neighborhood in a well-maintained small (<4 story) condo building in Denver, CO. Have been cash-flowing on this property with zero vacant days since I bought it. I have excellent credit. Would really like to refi to a fixed 15 or 30 year loan, esp while rates are so low. Does this even an option or am I doomed if I decide to hold onto it after 7 years (assuming interest rates are going to start increasing significantly now that the quantitative easing is over)? Would love some advice and/or hopefully some offers from local lenders.
""Do fixed (15 or 30 year) mortgages exist for non-warrantable condos (>50% non-owner occupied). ""
Yes. Very much so. Make a list of local and regional banks and credit unions, and call them all. You'll find a few, that keep those loans in house. You'll pay only a marginally higher rate.
Oh really, do you have one?
Non warranted condos won't go in the secondary market, banks/CUs sell long term fixed rate loans in the secondary, always, as they may not take the interest rate exposure of long term portfolio loans.
I'd say it would be very hard to find, not saying someone out there doesn't have a fund accepting such loans, but I'd think rare as hen's teeth. IMO
You might be better off going to your HOA and working on getting the project approved, it's why many HOAs limit rentals. :)
""Do fixed (15 or 30 year) mortgages exist for non-warrantable condos (>50% non-owner occupied). ""
Yes. Very much so. Make a list of local and regional banks and credit unions, and call them all. You'll find a few, that keep those loans in house. You'll pay only a marginally higher rate.
""Do fixed (15 or 30 year) mortgages exist for non-warrantable condos (>50% non-owner occupied). ""
Yes. Very much so. Make a list of local and regional banks and credit unions, and call them all. You'll find a few, that keep those loans in house. You'll pay only a marginally higher rate.
Oh really, do you have one?
Non warranted condos won't go in the secondary market, banks/CUs sell long term fixed rate loans in the secondary, always, as they may not take the interest rate exposure of long term portfolio loans.
I'd say it would be very hard to find, not saying someone out there doesn't have a fund accepting such loans, but I'd think rare as hen's teeth. IMO
You might be better off going to your HOA and working on getting the project approved, it's why many HOAs limit rentals. :)
On a non=conforming condo? Well, post up the lender because there are a ton of owners that would love to refi into a 30 year fixed. Great find then! :)
@Kimberly Gillock - I have a 15 year fixed loan with a credit union on a property that was not resold on the secondary market. That said the interest rate is 6% but it is fixed. The property is in Wyoming and I know they don't lend in CO but I agree that you should make a list and start calling.
Hi @Kimberly Gillock and welcome to BiggerPockets. Not sure if fixed rate loans are possible or not, but I do know there are lenders for these non-warrantable condos. But if you're looking for the name of a lender you'll need to post in the Marketplace.
@Kimberly Gillock sorry for the delayed reply but conventional financing is absolutely available for non-warrantable condos. It's hard for smaller complexes to play by FNMA rules, for example I own in an 18-unit building where one owner has two units, therefore one owner has more than 10% of the building so it's automatically non-warrantable. I do a lot of condo deals and have some great lenders at Elevations, Compass, and Vectra all of whom will lend on those. Feel free to contact me if you'd like referrals or have more questions.
@Micki M. that is great news!! I'm going to talk to a few people on Monday, so will message you for a few referrals. That's awesome that you've got a good handle on the condo market in this city-- they are extremely difficult to come by!
Keep abreast of new lending rules (which happen constantly). I've talked a lot about my non-warrantable building, and have just learned we are now warrantable. We have 18 units and one owner had 2 units putting us over the 10% rule but my lender just told me the rules have changed for buildings under 20 units and that is now allowed by Fannie & Freddie. Never assume!
Yes, you can get a 30 yr fixed conventional mortgage on a non-warrantable condo. It comes down to why it is non-warrantable (too many investors vs defunct HOA), and what are you buying the condo for (primary, second or rental). Some non-warrantable issues don't apply if you buy as primary/second.
@Micki M. so you're able to refi your previously non-warrantable condo into a fixed mortgage?! I need to talk to my lender... Thanks for the great news!!
@Kimberly Gillock I always had a fixed mortgage on my non-warrantable, it's doable you just have to work with the right lender. I was just pointing out that we are now warrantable due to a rules change so always double check. Most listing brokers don't understand what makes a property non-warrantable.