Considering a Condo Mortgage in Colorado?
People interested in buying a condo may experience a few more conditions than purchasing a single family detached home with a mortgage. There are additional requirements for Colorado condo financing transactions which entail a review of a completed questionnaire by the homeowners association before financing is approved.
If the condo project is FHA approved, you can purchase it as a primary residence with a 3.5% down-payment*. We can help locate a building that is FHA-approved so you can shop with confidence.
If the community is Fannie Mae approved, the condo down payments are:
Primary Residences: 3%
Second Homes: 10%
Investment Property: 10%
Mortgage Rates for Condos in Colorado
The mortgage interest rate for a Colorado Condo is determined by many different factors which include:
Your middle credit score from the lender's tri-merge credit report
Monthly debt-to-income ratios
Loan types; adjustable or fixed-rate
Your down payment amount (or equity for a refinance)
If the project is not Fannie Mae or FHA approved, you may be eligible for jumbo or non-warrantable financing whuch is discussed below.
Need Condotel Financing in Aspen, Snowmass Village, Steamboat Springs, Telluride, Vail?
We have condotel programs that allow:
up to 75% financing on condo-tels to $2.5 million as a primary or second home.
Better rates available for 70 percent financing and less. Purchase loan-to-values (LTV) (down payments) are identical for a primar residence, vacation home or exclusively used as a rental property. Refinance transactions have lower LTVs.
A Condotel is a condominium that is typically inside a resort or operates like a hotel where owners can rent out their units when they are not occupying it to produce additional income. Many people finance a vacation home condo for winter getaways.
Condo-tel Property Requirements:
Must have a minimum of 500 sq. feet (no exceptions)
Must have a full kitchen and at least 1 bedroom (no studio units)
Must be able to reside year round
Were You Declined by a Lender Due to?
Condo association doesn't allocate 10% of their revenue to fund reserves
They require 20% or 30% down payment for primary residences.
The master condo Insurance policy has co-insurance.
A requirement that 51% be owner occupied & second homes.
This is not a problem for us. We are able to close condo loans that have non-warrantable issues routinely.
See the chart below:
* subject to borrower qualifying for financing.
Financing for Non U.S. Citizens
Foreign national buyers may be eligible to obtain financing in Colorado and reap the benefits of decade low interest rates. L1, H1, and E7 Work visa holders may be eligible to obtain financing to purchase a home.