Condo Hotel Mortgage Lender
This BLOG On Condo Hotel Mortgage Lender Was UPDATED On March 27, 2017
Both condo hotel unit buyers and owners are having an extremely difficult time buying and refinancing their Condo Hotels. Most Condo Hotel owners have their mortgages with previous Condo Hotel Mortgage Lender who no longer finance Condotels, Big banks like J.P. Morgan Chase, Wells Fargo, Bank of America, and Citibank have set a policy that they are not going to touch condo hotel financing even though they have preferred borrowers who they have financed them before. Others have their Condo Hotel Mortgages with regional and local banks while others have it financed with their credit union. Again, same answer. They will not refinance the condominium units they already have a first position in. The majority of Condotel Owners have their Condo Hotel mortgage interest rates north of 7.0% and their current lender want no part in refinancing their current Condo Hotel Loans. Condotel Financing is now back in full swing and more popular than ever. The Gustan Cho Team are experts in condotel and non-warrantable condo financing
Condotel Financing is tougher now than it has ever been. Fortunately, The Gustan Cho Team can help Condo Hotel owners in financing their Condotels for both purchases and refinances. The Gustan Cho Team at Nationwide Mortgage & Realty LLC is a Condo Hotel Mortgage Lender and can offer various types of portfolio loan program.
The following are the terms for refinancing your Condo Hotel:
- Unit needs to be at least 500 square feet
- Condo Unit needs to have a full kitchen and have at least one bedroom
- 75% loan to value for rate and term refinancing and 25% down payment required on purchases
- 7/1 ARM, 5/1 ARM, 3/1 ARM. Index is based on the CMT ( Cost Maturity Index ) and the margin is 3%.
- There is a clause stating when the mortgage interest rates adjusts, it cannot go lower than the starter rate.
- 1 year of reserves which can be a combination of cash, stocks, bonds, and/or retirement funds.
- Two years of verifiable employment.
- Condotel can be classified as a second home as long as the borrower does not have more than the Condotel and his or her primary residence only.
- Condotel can be classified as an owner occupied residence if the borrower does not own any other real estate besides the Condo Hotel.
- The second home classification and owner occupied classification is important because the borrower gets a reduction adjustment on the interest rate.
- Closing on Condotels are faster than conventional mortgages.
- Most Condo Hotel Refinance Loans can close in 30 days or less.
For more information, contact me at 262-716-8151 or email me at firstname.lastname@example.org .
Gustan L. Cho NMLS ID 873293
Licensed Condo Hotel Mortgage Lender