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Updated about 2 years ago on . Most recent reply
Condotel at 10% APR??
So I was wondering what the reasoning was behind such a high interest rate on condos? 10% is super high. Anyone have any insight?
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Jay Hurst
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Jay Hurst
#1 Creative Real Estate Financing Contributor
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#1 Creative Real Estate Financing Contributor
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- Dallas, TX
Quote from @Mike Dawson:
So I was wondering what the reasoning was behind such a high interest rate on condos? 10% is super high. Anyone have any insight?
@Mike Dawson You mention Condotel if you title, but then call it a condo in the post. If it is a Condotel, they are NOT eligible for conventional financing (which means Fannie/Freddie do NOT allow) and most non-conventional programs do not allow for condotel's either. So, when a property type is risky enough that most available programs will not lend on it, the rate is going to get high.
- Jay Hurst
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