Pacific Home Loans is a Premier Condotel Lender, with over 19 years of experience financing condotels. We closed our first condotel loan in 2003, and in 2007, we established lending relationships with some of the leading local banks. Since then, we have consistently been a top producer of condotel loans.
The programs offered by local banks and credit unions are designed specifically to cater to the needs of the local market and community and are called Portfolio Loans. You can learn more about the opportunities provided to Pacific Home Loans clients through Portfolio Loans here.
Pacific Home Loans continued to thrive, even through the challenges of the 2008 housing market crisis, and in 2018 we processed, underwrote, and funded our first in-house Alt-Doc loan. In 2019, we began in-house funding of Airbnb short-term rentals. And today, we continue our mission to identify new programs that will make the dream of home ownership a reality for every borrower!
Non-QM and Alt-Doc Loan Programs for Condotel Properties
Lately, the buzz has been all about “Non-Qualified Mortgage” and “Alternative Documentation” loan programs – and for good reason!
Traditional underwriting requires extensive documentation – pay stubs, tax returns, bank statements, etc., and is held to agency standards – those most commonly being Fannie Mae (FNMA) and Freddie Mac (FHLMC). These agencies have stringent guidelines that leave little to no room for exception. These rules and guidelines also limit lending to specific property types, which is where the world of Non-QM and Alt-Doc comes in.
Non-QM and Alt-Doc Programs use “alternative” methods of documentation to qualify a borrower for non-traditional underwriting. Since these loans aren’t sold to the agencies (recall: Fannie and Freddie), they have more flexibility in the property types that the loans finance – like condotels! These loan types also allow for the use of the proposed monthly rental income for qualification. Translation? Short-term rentals, or daily/weekly vacation rentals, can be used as qualifying income!
Alt-Doc programs have been around since 2018 (when Pacific Home Loans began offering them!). Only now, with the recent increase in demand for this type of loan, are other lenders starting to catch the Alt-Doc wave.
Bottom line? We’re the pros! We can close your Condotel Loan! Take advantage of our years of experience!