I have what I think is truly great news. We at VanDyk Mortgage have started warranting condos. This allows us to be less stringent regarding down payment requirements (than our friends over at Fannie Mae), and actually opens up the local condominium market to another sector of buyers that are currently not eligible for financing.
What we as a company have decided to do is absorb some of this risk to get these units moving. The condo market is a huge one for those who snowbird and/or seek a low maintenance lifestyle. We believe it needs a little support.
So we are accomplishing this by reducing the down payment requirements pretty much across the board.
- Down payments for primary, owner-occupied properties: 25% for Fannie Mae; 10% for VanDyk Mortgage
- Down payments for second homes: 30% for Fannie Mae; 20% for VanDyk Mortgage
- Down payments for investor properties: Not available from Fannie Mae; 35% for VanDyk Mortgage
The only caveat to these opportunities is that there’s an extra step. The property will take 35 days to close instead of 30, and the minimum loan amount is $50K. Not bad…
At the end of the day, by underwriting our own guidelines we are guaranteeing the loans. We think it is not only good business, but it makes sense for the home buyers who have the established credit, just don’t necessarily have the little extra green it takes to get the American Dream.