All Forum Posts by: Tarik Turner

It really depends on the loan type that you are in initially. Most 30 year mortgages come with a prepay penalty that you would be responsible for if refinancing within the first 5 years.

The other option would be to purchase a property with some value add, spend the year rehabbing the property and then refinance out into a long term loan after the work is completed and rates have fallen. Short term loans typically do not come with a prepayment penalty and you would end up with the property rented at a better interest rate and could possibly pull out some equity.
Remember-Trying to predict future rates can be a risky move -you never really know where things will land

The minimum seasoning period required to refinance a new construction mixed-use property can vary depending on the lender and loan program.

Our company would require a seasoning period of at least 12 months,  This time frame allows lenders to assess the property's stability, performance. For non Commercial properties that time frame tends to be 3 to 6 months but again shop around, every lender has their own criteria

Yes it can be done as everyone mentioned here. A few things that I will add is
if you will be in a different country at the time of closing on the mortgage your lender may require you to sign docs at a us embassy.
You must also have a US bank account in most cases
Depending on when you purchased the property their maybe a seasoning period unless you are doing a delayed purchase

You can also check the consumerfinance.gov website for rural designation of an address

The Closing costs of a new loan for any lender that wants to see a profit is going to be more than the 1% fee and rates might be comparable depending on where your numbers are, not to mention the additional appraisal and other costs that might be required.

We might be able to make something work here as well depending on the details. Send me a message if still looking for a quote

You might want to look into alternate ways to get into the real estate business. Anything where you can learn  about the industry and make some extra money might be beneficial.

I often get Condotels submitted for funding. These deals can get funded however not all lenders have an appetite for them. Below are some of the reasons it is a struggle.

Condotels, or condominium hotels, present unique challenges for lenders, which is why many of them may be hesitant to offer mortgages on such properties. Several factors contribute to this reluctance:

1. Rental Income Uncertainty: Condotels are often operated as hotels, allowing unit owners to rent out their units to guests. The income from these rentals can be unpredictable and may not be consistent, making it difficult for lenders to assess the borrower's ability to repay the mortgage.
2. Operational Risks: Lenders may be concerned about the operational risks associated with condotels. These properties are typically managed by a hotel management company, and if the management is not effective, it can impact the property's overall performance and, consequently, the borrower's ability to make mortgage payments.
3. Market Volatility: Condotel markets can be more volatile than traditional real estate markets. Changes in tourism, economic downturns, or shifts in travel trends can affect the demand for condotel units and impact property values.
4. Condo Association Issues: The homeowners' association (HOA) or condo association associated with condotels may have specific rules and financial stability concerns. Lenders may be wary of potential conflicts or financial issues within the association that could affect the property's value.
5. Financing Challenges: Financing a condotel may be more complex than a traditional mortgage. Lenders may face challenges in valuing the property, determining loan-to-value ratios, and establishing appropriate underwriting criteria.
6. Lack of Secondary Market Support: Mortgages for condotels may be considered non-conforming loans, and there may be limited or no support from government-sponsored entities like Fannie Mae or Freddie Mac. This lack of secondary market support can make lenders more cautious.
7. Legal and Regulatory Complexities: Condotels may be subject to complex legal and regulatory issues, varying by location. Lenders may be concerned about potential legal challenges or changes in regulations that could impact the property's value or their ability to enforce the mortgage.

I agree with the other posters on this thread. It really depends what the 8k covers. If it is just origination and other lender fees then that is pretty high. But there are so many other non lender fees that are included in the loan process that a total of 8k sounds about right for the property value

What type of project are you looking to finance? Are there any details you can share