Tough lending in Summit County
Unless you have been living in a cave in the hills, you have heard about the credit crunch and tight lending practices borrowers are encountering today. In Summit County, buyers of condos and townhomes are having an even tougher time since the lending pendulum has swung so radically in the other direction. I've sent this letter to some folks in Washington to keep us on their radar. Thought you might find it interesting.
"As lending practices continues to tighten, it has become exceedingly apparent how this affects our economy in Summit County.
Current Fannie Mae Guidelines indicate perfectly sound and warrantable condominium projects in Summit County may be denied any financing possibilities simply because they are located in a "resort" area or because individual unit owners may rent their units on a nightly basis. Furthermore large banks are adding additional cumbersome barriers restricting financing because many condominiums do not have individual meters for gas and electric services or because the word "lodge" is in the name. These are examples of unreasonable and unfounded restrictions that are severely hindering buyers trying to purchase condos in our area.
If lenders had the ability to loan judiciously to a fireman or a teacher or other permanent residents who's main option for housing is a condominium, we would see more building, more jobs and a good beginning of economic recovery. Second homeowners are also hurt by these restrictions and are finding it increasingly difficult to purchase property in Summit County. Healthy resort areas are one of the major heartbeats of Colorado.
When people think of Colorado, they think of mountains and fishing and snow and skiing. Tourism is the second largest economic driver in Colorado.We also rely on tourists to buy second homes in Summit County furthering jobs and promoting a healthy economy.
We need your help and strongly urge you to help reopen the financing doors from FNMA and FHLMC.
Thank you in advance for your consideration and help!"
Certainly, the lending practices had gotten far too lax, but to penalize strong, stable complexes with few to no foreclosures on their books seems irresponsible in the other direction!
We do have a few great lenders who are able to finance condos in Summit County- up to 90%. Please call if you'd like more info.