Steamboat Condo Financing Update
May 21, 2012
Buyers looking to purchase a Steamboat Springs are sometimes surprised to find conventional financing can be challenging at some condo developments. These buyers generally have high credit scores, money in the bank, and have no problem qualifying for conventional loans. The issue is with the condominium development–not the borrower. Government-backed loans currently make up over 90% of mortgages, so if the condo development doesn’t fit into the current Fannie Mae and Freddie Mac guidelines, conventional loans can be difficult to find. In Steamboat, things like front desks, nightly rentals, and timeshare language in the covenants are all red flags for conventional financing.
These challenges to financing resort properties are being noticed and may start to change.
Sarah Thorsteinson, the Steamboat Springs Board of Realtors’ Government Affairs Director, has this to say about financing issues in resort real estate markets like Steamboat Springs’:
Condo Financing Issue Finally Making Waves In Washington:
For years, the Colorado resort areas have clambered to NAR that condo financing rules were killing the local markets, and that the FHA, Fannie Mae and Freddie Mac rules needed to be addressed. It was clear for the first time this year in Washington that the condo financing issue is beginning to stick. Congressman Polis talked about his bill to address workforce housing condo rules, NAR had talking points on FHA condo rules that need to be addressed from a regulatory perspective and there is a letter being circulated by Members of Congress telling the FHA to take action. As of this morning, NAR reached out to the resort areas and offered to request a waiver or exemption for resort areas. The Glenwood, Steamboat, Summit and Vail Boards will be working with NAR to draft and request the waiver for resort areas. Due to the Washington political climate, it is possible that
no changes will be made this year, but it is inevitable that the issue will be addressed in GSE and housing reform next year.
For more information on what Steamboat properties are easier to finance, please call us at 970-819-6372.