Ditech Mortgage Corp’s correspondent lending division announced two new features of its crimson jumbo product: non-warrantable condos and condotels.
The new features will be launched following this year’s Mortgage Bankers Association Annual Convention & Expo.
Condominiums can be deemed non-warrantable through a variety of issues – from the project including hotel-like features to having one person or entity owning more than 10% of the total units. They are also not eligible to be sold to Fannie Mae or Freddie Mac.
Meanwhile, Condotels are typically located in high-rise buildings that are developed and operated as luxury hotels, usually in major cities and resorts.
These hotels contain condominium units whose buyers essentially purchase full-service vacation homes.
“Many of ditech’s competitors do not lend on non-warrantable condos and condotels,” said John Davis, senior vice president of correspondent lending at ditech. “The MBA Annual Convention & Expo offers the perfect place for us to showcase how we can help consumers purchase and finance these types of properties.