California Condo Hotel Mortgage Rates

This BLOG On Condo Hotel Mortgage Rates Was Updated On March 18, 2017

Not too many lenders will finance a Condotel.

  • Condotel Financing has much tougher terms than other types of mortgages. 
  • Condo Hotel owners who has their current Condotel Loan with big banks like J.P. Morgan Chase are probably paying Condo Hotel mortgage rates of 7% or more. 
  • Although big banks like Chase has your current Condotel mortgage, they will not refinance it if you asked them to. 
  • Chase and other big banks has stopped financing Condo Hotels altogether. 
  • Condo Hotel mortgage rates are competitive with Jumbo mortgage loans.

Condotel And Non-Warrantable Condo Financing

Condo Hotel mortgage rates are very competitive with Jumbo mortgage rates. Unfortunately, most lenders will not offer a 30 year fixed rate on condo hotel financing. Adjustable Rate Mortgages such as a 3/1 ARM, 5/1 ARM or 7/1 ARM are the condo hotel financing terms available.  The starter condo hotel mortgage rates with all of the adjustments are higher than warrantable condo hotel loans. Condo Hotel Mortgage Rates are also substantially higher than a residential homeowner occupied single family home.

  • The index is based on the CMT (Cost Maturity Index) which is the one year treasuries. 
  • The lender will require a reserve as well, which is normally one year worth of reserves which can be the combination of cash and other liquidable assets like stocks and bonds. 
  • On a purchase Condotel Loan, lenders prefer in lending not more than a 75% Loan to Value ( LTV ).
  • On a Condotel refinance, if you are applying for a rate and term Condo Hotel Loan, then the LTV is 75%. 
  • However, if you are applying for a cashout Condotel Loan, your LTV drops to 60% Loan to Value. 
  • The one year cash and/or liquadable asset requirements will apply for Condo Hotel rate and term refinances, Condotel Cashout Refinances, and Condotel Purchase Loans.

California Mortgage Loans

Gustan Cho Associates are California Mortgage Loan Specialists.

  • Condotel financing is now available throughout the state of California with 25% down payment. 
  • Minimum loan size for California condotel mortgage loans is $100,000 and maximum California condotel mortgage loan amounts is capped at $5 million.
  • Gustan Cho Associates also specializes in California Jumbo Mortgage Loans. 
  • 90% loan to value California Jumbo Mortgage Loans is now available to California high end home buyers. 
  • Credit scores required for California Jumbo Mortgage Loan Borrowers is 660 FICO.
  • Gustan Cho also specializes in California home loan with bad credit. 
  • No lender overlays. 
  • FHA loan limits in many parts of California is $636,100 and California home buyers with credit scores as low as 580 FICO can now qualify for California home loan with bad credit. 
  • Contact Gustan Cho at 262-716-8151 or email gcho@gustancho.com.

Condotel Financing and Non-Warrantable Condo Loans

Most Condo Hotel sellers are aware how difficult it is to obtain Condo Hotel Financing  and either want a cash buyer or a buyer with a strong pre-approval.

  • There are two processes in the pre-approval process on a Condo Hotel. 
  • The first is the Condo Hotel need to be approved. 
  • This is simply done by filling out a one page Condotel Questionnaire which I can email you. 
  • The Condo Hotel HOA manager needs to fill it out. 
  • Email me the questionnaire and within 24 hours I can give you the answer whether the Condo Hotel is qualified for financing. 
  • If the condotel is approved, we then proceed to the second step which is getting the borrower approved. 
  • Borrowers can either call me to apply for their Condo Hotel Loan or apply online here at www.gustancho.com
  • You need to click on the APPLY NOW icon on the top left corner of this website and fill out the SECURED FULL APPLICATION.

Please contact us if you have any questions on Condo Hotel Financing

Gustan Cho NMLS ID 873293

Senior Vice President of Nationwide Mortgage & Realty LLC NMLS 276777

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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