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PARK CITY REAL ESTATE

tel Call : 435.901.8333

Condo Financing

May 30, 2013 by crystal Leave a Comment

Because of the resort nature of Park City getting a loan for a condo can be tricky.  There are basically three types of condos; Warrantable (can get a conventional loan), Non-Warrantable (does not qualify for conventional loan), and Condo-Hotel (just like it sounds it is part of a hotel).

2445 Gilt Edge Circle, Deer Valley Offered at $499,000
 

When a property is identified for purchase the first step is to determine which category the property falls into. This is done by researching the legal description (is it a condo, townhome, planned unit development).  In Park City it may look like a condo from the outside but it is legally a townhome or planned unit development, so different guidelines apply.  The condo project is looked up on the Fannie Mae and FHA websites to see if it is approved by either entity. Currently there are no approved condos in Park City.  The project is checked to see if it is on any lenders Do Not Lend List.  Next I Google the property and look for any association with nightly rentals, hotels, onsite check in desks, and hotel type amenities.  This gives me an idea what some of the challenges this property will have.

260 Main Street, Penthouse 201 Offered at $1,995,000
 

Next, the HOA fills out a condo questionnaire.  There is a limited review and a full review.

Limited review: primary home or second home, 80% or less loan to value, established condo projects, approval done by underwriter, no occupancy ratio requirements, no more than 15% owners late on HOA dues.

Full review: primary, second home and investment, 80% or more loan to value, 51% of project owner occupied or second home, 10% of budget for reserves, no single entity can own more than 10% of project, established and new projects, no more than 15% owners late on HOA dues, and approval done by condo department at a fee.

Brief list of items that make a condo non warrantable; managed as a hotel, hotel conversions, hotel or motel in name, onsite registration AND nightly rental, restrict occupancy, timeshares, co-ops, houseboats, 20% + of space is not residential, single entity owns more than 10% of project, HOA in pending litigation.

1416 Deer Valley Drive N, Deer Valley Offered at $699,500
 

If a condo is warrantable, the buyer can get a conventional (normal) loan, fixed rate or adjustable rate at current market rates.  If the condo is non-warrantable or a condo-hotel the loan will have to go to a portfolio investor.  They typically requires 30% down and only have adjustable rates available (3,5, and 7 years). The rates are usually 1%+ higher than a conforming loan.

Contact me for more information or specific questions.

Amy Sharpless

Senior Loan Consultant (Sharpless/Hoyt Team)

435-645-3923 Office        435-640-1878 Mobile      amy.sharpless@academy.cc

NMLS ID: 294849 License #: 5460939        Company NMLS #: 3113 State #: 5491140

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tel Call : 435.901.8333

About Jensen and Company

Brad Jensen has been a top realtor since 1988. In 2021, he was invited to join the prestigious International Luxury Alliance. The Alliance is an elite network of real estate professionals from key markets in the U.S. and abroad. Creating unique opportunities for his clientele to acquire some of the most sought-after real estate in the world. He is one of the most respected agents in Utah and would be happy to assist you in selling your home or buying a new home. It is Jensen and Company's goal to help make your real estate transaction as easy and stress-free as possible. Our blog has lots of great information and market intelligence to help you learn more about the Park City real estate market. Please contact us if you have any questions. We would be happy to assist you.

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1153 Center Dr Ste G200
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ftel Call : 435.901.8333

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  • About
    ▼
    • Testimonials
    • Our Videos
    • Contact Us
    • Blog
  • Search
    ▼
    • Significant Sales
      ▼
      • Luxury Mountain Living
    • Featured Properties
    • Property Search
    • Most Recent Properties
  • Park City
    ▼
    • Buy in Park City, Utah
    • Sell in Park City, Utah
    • Park City Homes & Condos For Sale
    • Park City Real Estate
  • Deer Valley
    ▼
    • All Deer Valley Real Estate
    • Deer Valley Homes & Condos For Sale
  • Communities
    ▼
    • Old Town
    • Thaynes Canyon
    • Lower Deer Valley
    • Deer Crest
    • Upper Deer Valley
    • Empire Pass
    • Aerie
    • Prospector
    • Park Meadows
    • Canyons Village & Colony
    • Sun Peak | Bear Hollow
    • Silver Springs
    • Old Ranch Road
    • Kimball Junction
    • Pinebrook
    • Summit Park
    • Jeremy Ranch
    • Glenwild | Silver Creek
    • Trailside Park
    • Promontory Area
    • Jordanelle Area
    • Midway | Charleston
    • Heber City
    • Kamas & Marion
    • Huntsville – SnowBasin
    • Red Ledges
  • Buy
    ▼
    • Deer Valley Real Estate
    • Park City Homes & Condos For Sale
    • Park City Real Estate
    • Deer Valley Homes & Condos For Sale
  • Sell
    ▼
    • Why Sell With Us
  • Discover
    ▼
    • Park City Events Calendar
    • Featured Attractions
    • Local Ski Resorts
    • Park City Local Vendors
    • Our Infographics/Resources