non-warrantable condo and condotel mortgages
By Jim Pendleton - Mr MortgageTM
Over the last few weeks, a choice group of small banks and investment vehicles have toed the
water a bit and re-opened the industry for non-warrantable and condotel mortgages. Rates run about a
half-percent higher than a comparable conventional mortgages and the minimum downpayment for non-warrantable
condo and condotel mortgages starts at 25 percent.
Beyond that, however, obtaining an approval is simple.
1. Prove your income
Prove your assets
Prove your credit score
That's it. Now, there are some creating considerations, as well, but they're not nearly as
tough as what Fannie or Freddie will throw at you. And they're more geared toward making sure the creating is
well-constructed non-warrantable condo and condotel mortgages and properly insured.
Any reputable condo or condotel is going to pass those two tests.
And even better -- mainly because approvals are being handled by small lenders and not Big
Banks, loan approval times are decidedly quick. It's common to close on a condotel or non-warrantable condo
in less than 30 days.