Sierra Pacific Mortgage Condo Loans for the Lake Tahoe Area
Sierra Pacific Mortgage—Financing Homes & Condos in Tahoe and Truckee Since 1992
The greater Tahoe and Truckee area is known worldwide for its winter and summer sports. There are thousands of condos built around ski resorts and around the lake itself. Many people own a condo in Tahoe to use during the ski season. Many others invest in a condo and rent it out to generate investment income.
But buying a condo can be challenging. There are a variety of unique aspects to the loan and purchase process. Working with an experienced, local mortgage banker who is familiar with the local market and the uniqueness of the condo loan process will make the condo buying process streamlined and easy. At the Sierra Pacific Mortgage-Lake Tahoe Office, we have the expertise needed to assist you with all of your condo loan needs.
Located in Incline Village, we are experts in Lake Tahoe real estate and offer a broad suite of loan products that will certainly meet your needs. We serve the communities of Truckee, Crystal Bay, Incline Village, Glenbrook, Zephyr Cove, Stateline, South Lake Tahoe, Tahoma, Homewood, Tahoe City, Carnelian Bay, Tahoe Vista, Kings Beach, Genoa and Granite Bay.
Call Us Today to Learn More about Condo Loans
1 (775) 831-7151
Is A Condo Loan Different from A Traditional Home Loan?
In many cases, prospective condo owners will be able to take out traditional home loans in order to buy a unit in a condo complex. These types of loans generally feature low interest rates and generous repayment terms. This type of residential condo loan is considered ideal by most prospective buyers. However, your eligibility for a condo loan will be affected if you want to buy a property considered a condotel. Your mortgage banker will be able to provide you with guidance to determine whether or not a property will be classified as a condotel.
What is A Condotel?
The word refers to a condominium that can be rented out on a nightly basis. In most situations, the homeowners association (HOA) that governs the condominium complex decides whether or not a property is a condotel. If your condo is considered a condotel, you will likely not qualify for a traditional Fannie Mae home loan. You will need to pursue a special condo loan designed for condotel owners.
Can You Finance The Purchase of A Condotel?
Despite restrictions that prevent potential buyers from financing a condotel with a Fannie Mae loan, it is possible to use a condo loan to purchase such a property. Your Sierra Pacific Mortgage-Lake Tahoe Office mortgage banker can explain your condotel financing options to you in detail. Be aware that the financing rate on this type of condo loan tends to be higher than the financing rate for a Fannie Mae loan.
In addition, you may need to secure a condotel property with a larger down payment than you would need in order to secure a traditional residential property. Your mortgage banker can help you understand interest rate and down payment restrictions for this type of property.
Who Determines if Your Condo is A Condotel?
One of the most common questions prospective condo buyers ask is who decides if my property is a condotel? Before agreeing to finance your condo loan, the lender will send a condo questionnaire to the governing HOA. Lenders weight the information from this questionnaire in order to determine if you are eligible for a Fannie Mae loan.
The most important of these questions asks whether your condo can be rented out on a nightly basis. If the answer is yes, the condo will likely be considered a condotel. If a lender determines that you are not eligible for a Fannie Mae loan, your mortgage banker will help you understand your other financing options.
It’s a good idea to speak with the community’s HOA before approaching a lender. Be sure to ask the HOA if the condo can be rented on a nightly basis. Your mortgage banker can assist you as needed.
Working with aTahoe Mortgage Banker to Secure Your Condo Loan
A condo loan can differ significantly from a traditional home loan. It is essential that you work with a mortgage banker before pursuing this type of financing. Your mortgage banker can help you determine the type of financing for which you are eligible and will explain all financing terms to you. Your mortgage banker can also assist you with calculating total down payment and loan closing costs.