Condos are priced very attractively...how come you can't get financing?
Here is a term to get familiar with:
Non Warrantable Condo
The condo project does not fit the three Fannie Mae, Freddie Mac or FHA class guidelines. Banks typically do not like to lend on condominiums in non warrantable condo projects because they cannot be insured and cannot be sold off to an investor. The only lenders who will lend on a non warrantable condo project is a portfolio lender.
Non warrantable condo portfolio lenders lend their own money and hold the loan for servicing in their “portfolio” of loans. Non-warrantable condo portfolio lenders tend to lend on riskier real estate transactions and give higher rates due to the risk. Yes…this means a non warrantable condo typically have higher rates.
How do I find one of these banks that offers portfolio lending?
You reached the right spot! If you are located in California you can reach me at Golden Pacific Bank and we offer a bank portfolio loan that has competitive rates and terms. As an actual FDIC Insured depository bank we underwrite and fund our loans here locally in Sacramento.
We offer financing on :
- NON-Warrantable Condos
- Condo Hotels (Condotels)
- Hobby Farms
- Residential Care Homes
- Mixed Use
- Residential Construction
- Rural/Agricultural residential
Aaron Meilich |Community Banker
Golden Pacific Bank
916.798.3000 direct
aaronm@goldenpacificbank.com
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