Wednesday, October 05, 2022
..wanting to purchase one of the following types of properties
🏠 New Construction - Not completed yet but want to buy now
🏠 Condo or Townhome where HOA is still with developer
🏠 High % of Investor Owned units (like more than 50%)
🏠 Allows Air BNB type short term rentals
🏠 Single person or entity owns more than 10% of units
🏠 Building/Developer in litigation
🏠 Condotels (part condo / part hotel)
The majority of lenders will NOT loan you money to purchase one of the above properties Unless they are a portfolio lender. because any of those listed above make the property NON-Warrantable. Non Warrantable means the loan is not backed by the government and doesn't meet the guidelines set forth by the Department of Housing & Urban Development and therefore can't be easily sold off after you purchase.
(EX: have you ever purchased a home and after the first money of making payments you get this notification in the mail telling you the loan has been sold and your new lender is ??)
well this means your loan was warrantable / marketable and was sold off to another lender to manage it. Non-warrantable loans are when the loan is in house, NOT sold off and NOT marketed to other lenders. You get a loan and that loan is funded and you pay monthly to the same lender because they had enough funds in their own accounts without having to sell it off. Therefore, they take bigger risks.
Typically these non-warrantable loans are:
=> Called Portfolio loans (in house lending like Credit Unions or other banks with plenty of cash)
=> not backed by the government
=> Require larger down payments
=> Sometimes higher interest rates
THERE IS A LENDER WITH FINANCING SOLUTIONS FOR ALL THESE TYPES OF PROPERTIES: Amalgamated Bank Can loan up to 4 MIL for property purchase price Only 5% down 4.1% - 5.5% interest rates Credit 620 or higher Message me below to get their direct contact information.
...and get approved today to buy that Arlington Condotel you wanted but other lenders looked the other way, to purchase the new construction but other lenders said "let's wait until it totally built"
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