Summit and Eagle County Home Loans: What you need to know

Lake Dillion Colorado Summit County

There are so many reasons why family-friendly Eagle County, Colorado is a fabulous place to live. Gorgeous scenery, a diverse culture, a huge variety of outdoor activities from hiking and white water rafting to skiing, and first-rate public schools are all at the top of the list.

Summit County, Colorado boasts many of the same great characteristics as its neighbor, Eagle County. This piece of Colorado offers the best views, top-rate winter sports, colorful communities and businesses, excellent public schools, and convenient access to the Denver area.

If you’re considering obtaining a loan to purchase a home in these exceptional locales, here’s what you need to know!

Obtain a preapproval letter

Eagle County, Colorado is a competitive real estate market! In fact, in the town of Eagle, the average single-family home’s price increased 45% from early 2020 to early 2021. In Gypsum, multi-family increased 30% in that same time period.

Summit County has a booming real estate market as well! From January 1, 2021 to December 23, 2021, real estate transactions for property sales in Summit County reached $2.52 billion. That was an increase over 2020, which was just over $2 billion.

While rising interest rates have caused the market to slow down a bit this year, it’s still very strong. That means if you find a home you love, you need to be ready to put in a bid quickly! One way to get a competitive advantage in a hot real estate market is with a pre-approval letter. Having a pre-approval letter in hand before you even start home shopping is the best way for you to know what you can afford and ensure you don’t miss an opportunity.

Work with a local lender

Whether you want to purchase an investment property or plan to live full-time in Eagle or Summit County, local lenders have the most experience with these unique mountain communities. They know the area and understand how to work through challenging issues related to off-the-grid mountain properties, condotels, condominiums, and resorts.

Understand loans for off-the-grid mountain properties

Off-grid homes which have their own water and power sources and septic systems often do not qualify for traditional mortgages through Fannie Mae or Freddie Mac. Therefore you’ll need to find a bank that is willing to help.

To secure a loan for an off-the-grid property, it must have:

  •       A primary and secondary source of heat, such as a generator
  •       A permanent water source
  •       A functional well with potable water or be tied into city water

You’ll need homeowners’ insurance as well to purchase an off-the-grid property, which will be factored into your monthly mortgage. All of these regulations mean working with a local company that has expertise with these complexities is your best option.

Know what a condotel is and how to finance one

Condotels or resort communities are very prevalent in Summit and Eagle Counties. A condotel is a hybrid property that combines ownership of a condominium with hotel-like amenities such as a front desk check-in, housekeeping services, and a concierge. As an owner, you can rent it for short-term stays.

Like off-grid properties, many lenders are unable or unwilling to finance these types of properties. That is in part because lenders consider condotels to be investment properties and thus higher risk for late payments, even if you don’t rent it short or long term. Once again, your best bet is to work with a local lender with the resources to help secure a loan for this type of property.

Cedar Home Loans: The local knowledge you need and service you can trust

At Cedar Home Loans, we have extensive local knowledge that allows us to provide customized loan services for Eagle and Summit County home buyers. Our experts can help you select the perfect home loan solution and walk you through the process from start to finish.

We serve all of Eagle and Summit Counties including:

  • Breckenridge
  • Blue River
  • Eagle
  • Gypsum
  • Heeney
  • Red Cliff
  • Vail
  • Beaver Creek

Want to learn more? Contact us with any questions and we’ll get back to you shortly!

About the Author:

Andrew McBryan

Andrew McBryan is the owner and founder of Cedar Home Loans LLC, where he brings over 27 years of experience in the mortgage industry to his role. Andrew has successfully expanded the company across Colorado, including offices in Telluride, Vail, Summit County, and Boulder. His dedication to providing innovative mortgage solutions and his commitment to staying informed on the latest industry trends make him a trusted advisor to clients and referral partners alike.

When not focused on his business, Andrew enjoys the unique sport of burro racing and relishes the time spent skiing in Colorado’s beautiful terrain. Above all, Andrew is a devoted father, finding joy and inspiration in his daughter’s growth and happiness. 

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