Do we lend on a leasehold property?

Yes, we follow FNMA guidelines in regard to leasehold properties. Lease and Lender Requirements The term of the leasehold estate must run for at least five years beyond the maturity date of the loan unless fee simple title will vest at an earlier date in the borrower. The lease must provide that the leasehold can […]

Are we able to lend on properties that have business-use?

We follow FNMA’s guidance when it comes to properties that have a business-use in addition to their residential use, such as a property with space set aside for including but not limited to, a day care facility, a beauty or barber shop, or a doctor’s office. The following special eligibility criteria must be met: The […]

Will we lend on a property zoned for “Exclusive Farm Use” (EFU)?

No. EFU zones are preserved and protected lands for continued and future commercial agricultural production and related uses. As such, even if the purchaser or current owners do not use the property for commercial use/production, the property would be ineligible for CDL.

Would we lend on farms or rural properties?

It depends. If a property is zoned for agricultural use, we must ensure that the property is residential in nature, its residential use is a permissible use under the zoning classification, and its use does not primarily involve commercial activities such as farming or ranching. We follow FNMA / Freddie Mac regarding this topic. For […]

Can we lend on properties with outbuildings, such as barns, shops, storage sheds, etc?

That would depend on the type of outbuilding. We follow FNMA’s guidance on this topic: Type of Outbuilding Acceptability Minimal outbuildings, such as small barns or stables, that are of relatively insignificant value in relation to the total appraised value of the subject property. The appraiser must demonstrate through the use of comparable sales with […]

Can we lend in a Condotel / Condo Hotel?

Yes, if the subject unit is NOT and does not have the option to participate in the hotel program. The project will be considered as ‘non-Warrantable’, whereas LTV restrictions and pricing adjustments will apply.