Makai Mortgage is a leading condotel lender, with over 19 years of combined experience financing condotels. Although Makai Mortgage was established in 2019, our management closed its first condotel loan in 2003, and in 2007, began developing our long-standing lending relationships with some of the leading local banks. Since then, Makai Mortgage loan originators have made Makai a top producer of condotel loans.
How are we able to close so many Condotel Loans?
It’s all about program variety!
Portfolio Loans are traditionally the primary source of lending for condotel loans in Hawaii. These programs, offered by local banks and credit unions, are designed specifically to cater to the needs of the local market and community. Often, the guidelines for these loans can be a bit stringent.
Non-QM and Alt-Doc Loan Programs for Condotel Properties
Lately, we’ve been hearing a lot about “Non-Qualified Mortgage” (Non-QM) and “Alternative Documentation” loan programs – and for good reason! These newer-to-the-market programs make the purchase of condotel properties available to a wider range of borrowers.
Traditional underwriting requires extensive documentation from the borrower – tax returns, pay stubs, bank statements, and so on – and is subject to “agency” standards such as Fannie Mae (FNMA) and Freddie Mac (FHLMC). Agencies have strict and generally inflexible guidelines that usually do not allow for exceptions. On top of that, the guidelines limit lending to specific property types. When a property type or limited financial documentation availability poses a problem, the Non-QM and Alt-Doc loan programs can be a real boon!
Since these loans aren’t sold to the agencies, there is more flexibility in the property types that the loans finance – like condotels! They also use “alternative” methods of documentation to qualify a borrower for non-traditional underwriting. But wait, there’s more! Proposed monthly rental income – even short-term – can be used to qualify!
Alt-Doc programs have been around since 2018, but with recent changes in the housing market, are becoming more popular as other lenders are starting to promote them. Don’t get stuck working with someone new to this type of loan! These loans require much skill and the ability to think creatively to close. The management and loan originators of Makai Mortgage have been closing Alt-Doc loans since their inception.
Bottom line? Makai Mortgage not only has a wide range of loan options but also the skill and experience to close your condotel loan! Contact us for more details and to speak with our exceptional loan officers today.