fixed mortgage on non-warrantable condo?

[Kimberly Gillock]

Hi-- question for the lending community. Do fixed (15 or 30 year) mortgages exist for non-warrantable condos (>50% non-owner occupied). I currently have a 7-year ARM on a nice 1-bedroom condo in a great, appreciating neighborhood in a well-maintained small (<4 story) condo building in Denver, CO. Have been cash-flowing on this property with zero vacant days since I bought it. I have excellent credit. Would really like to refi to a fixed 15 or 30 year loan, esp while rates are so low. Does this even an option or am I doomed if I decide to hold onto it after 7 years (assuming interest rates are going to start increasing significantly now that the quantitative easing is over)? Would love some advice and/or hopefully some offers from local lenders.

[Bill Gulley]

Originally posted by @John D.:

""Do fixed (15 or 30 year) mortgages exist for non-warrantable condos (>50% non-owner occupied). ""

Yes.  Very much so.  Make a list of local and regional banks and credit unions, and call them all.  You'll find a few, that keep those loans in house.  You'll pay only a marginally higher rate.

Oh really, do you have one?

Non warranted condos won't go in the secondary market, banks/CUs sell long term fixed rate loans in the secondary, always, as they may not take the interest rate exposure of long term portfolio loans.

I'd say it would be very hard to find, not saying someone out there doesn't have a fund accepting such loans, but I'd think rare as hen's teeth. IMO

You might be better off going to your HOA and working on getting the project approved, it's why many HOAs limit rentals. :)