Hard Money Lenders on Condos Suggestions

6 Replies

Has anyone completed any recent purchases / cash out refi with a HML / private lender that approves with condos?

For example: I have talked with LendingHome about an upcoming purchase of mine but they don't do any condos in HOA associations. I was okay with some of there rates around 5-6% with 20-25% down @ 30 year notes and only around 1.5% origination fees, etc.

I am just having trouble finding some around that rate / fees that allows condos. Any suggestions?

Thanks!

Hi @Jake Boss ,

You can use the 'Find Partner's tab on BiggerPockets to look for some additional hard money lenders. 

HMLs will have varying guidelines with respect to condos, e.g. some will not fund non-warrantable ones, so it is generally a matter of shopping around and finding one that will work with your situation.

Best,

Michael

@Jake Boss There are many lenders that fund condo's. But every Condo does not qualify for financing. There are primarily two types of condominiums. They are warrantable and non warrantable. A warrantable condo is one that qualifies for FNMA or FHMLC conventional financing. LH and many other lenders will fund warrantable condo's but will not fund non warrantable condo's. I am guessing you are looking to purchase a non warrantable condo. If a lender will fund a non warrantable, the down payment and fees are generally higher. As an investor, you need to be concerned about non warrantable condominiums. As you are finding out they are harder to finance, specifically because they are riskier to the lender. 

That said if it is a great investment, proceed with caution. you can PM me if you want me to send you a form that all lenders require to determine if the condo is warrantable or not. This will let you know specifically what could be the issue.

Originally posted by @Jake Boss :

Has anyone completed any recent purchases / cash out refi with a HML / private lender that approves with condos?

For example: I have talked with LendingHome about an upcoming purchase of mine but they don't do any condos in HOA associations. I was okay with some of there rates around 5-6% with 20-25% down @ 30 year notes and only around 1.5% origination fees, etc.

I am just having trouble finding some around that rate / fees that allows condos. Any suggestions?

Thanks!

Jake

Are you looking for rehab money or just financing for a non-warrantable condo?

Stephanie