Financing Steamboat Springs Condos can be challenging, especially if the development you want to purchase is considered a “condotel”. Mortgage lenders Holly Rogers and Kathryn Pedersen from Yampa Valley Bank wrote this blog about financing Steamboat Condominiums:
Every time we submit a loan to our investors, we need to provide a homeowners association checklist. This is completed by the management company or the President of the Board. The checklist asks questions such as if the units are being used as a primary, secondary or investment property along with other questions about the association’s financial strength and property details. From the Fannie Mae guideline book, “Fannie Mae considers projects with any of the following characteristics to be hotel type projects and therefore, ineligible”:
- Central telephone system
- room service;
- units that do not contain full-sized kitchen appliances;
- daily cleaning service
- advertising of rental rates
- registration service
- restrictions on interior decorating
- franchise agreements
- central key systems
- location of the project in a resort are
- project converted from a hotel.
We have encountered these issues as well:
- Too many units are rented versus primary or second homes
- More than 15% of the units past due on their HOA dues
- Nightly rental units advertised on line
Please call us with any questions on Steamboat Springs condos.
Holly Rogers, 970.875.1636
Kathryn Pedersen , 970.875.1609
