Why am I having trouble re-financing my condo in Florida? It is in a condo-hotel and is rentable year-round.
They tell me it is not eligible for standard mortgage programs, despite the fact that Bank of America financed it 10 years ago.
Answers | 2
Condo-tels are properties that carry with them a great deal more risk than say a traditional condominium (with just one owner/occupant at a time). There are many layers to this additional risk that while 10 years ago may have been acceptable to a lender like BoA. However they are not 'agency eligible' (Fannie Mae/Freddie Mac) properties and therefore there are very few lenders that will agree to finance condo-tels because they will not be able to sell that loan. You may do better working with a mortgage broker or a correspondent lender (mortgage bank) because they will have connections with alternative investors that will finance units like this on a portfolio basis. Be prepared for higher rates however because these loans do come at a premium. Good luck.