Traditional mortgage lenders may require you to go through several hoops if you’re interested in purchasing a condo. Besides the general qualifications, they may also take a close at the condo association. Because condos remain popular as rental purchases, a high rental condo occupancy may cause difficulties if you wish to purchase a unit to use as a home.
A lender such as Fannie Mae, for example, has several condo financing guidelines that must be followed. These may include stipulations that owners need to occupy more than one-half of the units or one owner cannot own over ten percent of the units in the condo.
Potential owners also need to figure out if the condo can receive FHA, Fannie Mae, or Freddie Mac loan financing. Condos that are deemed “non-warrantable” are eligible for purchase, but considerable down payments are required or the buyer needs to pay cash for the condo. There is also the credit requirements that need to be dealt with.
For condo purchasers wishing to buy one for commercial rental purposes, a hard money loan may save the day. Because a buyer may need a substantial down payment, hard money lenders may be able to provide the funds necessary to purchase the condo. Hard money lenders don’t concentrate as much on credit ratings as a traditional lender, but they do need to see the potential for income so that the loan can be repaid. A hard money loan may also be useful as a bridge loan while securing a longer-term mortgage solution.
This update is by hard money loans Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on a hard money lenders Miami or a mortgage broker Orange County, please call 954-816-0388 or fill out our application.