Condo Mortgages Tight
Monday, January 12, 2009
Seems like Steamboat mortgage lenders are keeping busy… tremendously busy that is. With interest rates reaching all-time record lows, Steamboat mortgage lenders find themselves in the thick of a refinancing craze. Keep in mind however that the current rates are very volatile. Just recently, a 4.5% rate has been available, but only for a short window of time, often 2 hours or less.
Those looking to finance the purchase of a vacation condo however, are finding it much harder to secure the money they need. With stricter guidelines on financing nationwide, properties that allow nightly rentals are now often considered outside of the parameters in which mortgage giants Fannie Mae and Freddie Mac will lend. The reluctance of these two entities to back resort condominium loans regardless of their use is trickling down to institutional and local lenders alike. Having an on-site check-in at the property makes getting the loan approved even more difficult.
The unwillingness of Fannie and Freddie to get behind loans on condominium sales is making it even tougher to close these transactions in places like Steamboat Springs. Local mortgage brokers are finding it difficult to find lenders who’ll approve these types of loans which is slowing down the entire process. Buyers looking for the cash they need to purchase a condominium in Steamboat Springs, whether they plan to rent it out or not, should count on at least a month to close on the money they need.