Borrowers wish to purchase a new primary residence but already own their current residence. Would we be able to do the loan on the new purchase?
Yes, given acceptable motivation. Borrowers to provide a satisfactory motivation letter confirming their intent to move into subject property as primary residence. Borrowers to also state what they intend to do with the vacating residence (sell, rent, etc.). If they will be converting their vacating property to a rental, and are using rental income to […]
What is the minimum property condition Quontic will lend on?
Property must be rated with a minimum C3 rating. C4 will be considered on a case-by-case basis.
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 […]