Condo Hotel Financing
There is a large percentage of condo hotel unit owners who still have mortgage loans with big banks such as JP Morgan Chase, Wells Fargo, Bank of America, Citibank, and other large condo hotel financing companies and mortgage lenders at high interest rates.
Banks no longer do Condo Hotel Financing
Unfortunately, these banks are not willing to refinance the condotel mortgage loans they are currently servicing. It does not matter if the condotel mortgage loan borrower is a premier client with other assets with their bank, the banks are not interested in refinancing the current condo hotel loans they have on their books. I specialize in condo hotel financing for both condotel purchases as well as condotel refinance mortgage loans. I can help those condo hotel unit owners in California, Texas, Indiana, Kentucky, Florida and Illinois that need condotel refinance loans.
Requirements for Condo Hotel Financing on Refinance Loans?
- One of the requirements with condotel refinance loans is that the condo hotel unit needs to have a functional kitchen and at least one bedroom.
- The condotel unit needs to be in good condition and the condo hotel complex needs to be strong financially and cannot be in bankruptcy or have low reserves.
- The condo hotel cannot be under litigation and cannot have major building violations that is currently pending.
- Another issue that arises to our condo hotel financing loan borrowers that want to refinance is that the maximum loan to value that our lender will approve is a 75% maximum loan to value. It is wise to do some appraisal research on your own prior to actually submitting a condotel refinance loan application.
Why Is Appraisal Research Needed If You Want A Loan Refinance For Your Condo Hotel Financing?
This way, if the appraisal comes in lower than your anticipated value, you can contest the appraisal by submitting your supporting condo hotel financing comparables. An appraisal can easily be contested if you have a legitimate reason and comparables that you find on your own is a good reason for an appraisal rebuttal.
In the event if the appraisal comes in lower than the anticipated estimate, the only way the condo hotel refinance loan will go through is by paying down your current condotel mortgage loan so it falls within the 75% loan to value. Condotel appraisals are arbitrary and there is no set formula on the value it will come in. If you are armed with necent comparables, you can assume that the condotel refinance loan will go through. However, if you have no comparables, you need to prepare yourself to buy down your current condotel mortgage loan so it falls within the 75% loan to value requirements.
Realtors specializing in Condotels
I would consult with realtors who specialize in condo hotels in your area to find out what comparable condotel units are selling for and what they have recently sold for.