Condo Hotel Mortgages And NON-QM Loans Florida

0

This BLOG On Condo Hotel Mortgages And NON-QM Loans Was UPDATED And PUBLISHED On July 28th, 2020

Condo Hotel Mortgages and NON-QM Loans are back. A Condo-Hotel is a Condominium inside a Hotel Complex. The Condo Hotel Complex Homeowners Association (HOA) is in charge of managing all condotel units within the Hotel Complex.

  • Condo Hotel owners have the luxury to own and occupy their Condotel units when vacationing
  • Condotel unit owners have the benefits of renting out their Condo-Hotel units when they are not using it
  • The Condo Hotel management company manages the rental and maintenance of the Condo Hotel unit for a percentage of the income
  • Many Condo Hotel owners have their mortgage and expenses covered by the rental income their Condo-Hotel units bring in
  • Other Condotel owners make positive annual cash flow and have the luxury of occupying their Condotel units
  • An excellent investment

In this article, we will discuss and cover the qualification requirements for condotel financing.

Condo Hotel Concept

What is the concept of the Condo Hotel

In order to understand the condotel concept, it is important to understand a little bit about how real estate works.

  • Most everyone has stayed in a hotel
  • The hotel owner, usually one person or business, rents out rooms in the hotel for a fee

Condotel Unit Owners can live in Condotels full time as their primary homes.

Condo Hotel Unit As Primary Or Second Home

Meanwhile, condos are generally sold as homes or second homes.

  • Buying a condo is like buying a house
  • The owner does not pay rent to anyone
  • The intention behind the condotel is to mix these two forms of real estate to make something that is the best of both worlds

They have all the luxury of a hotel, but the buyer owns them outright.

How Did The Condo Hotel Concept Start?

The condotel concept started as a way for hotel companies to fund new hotels.

  • Building a hotel is expensive. Instead of building the hotel first and then allowing people to rent the rooms, condotel owners sell the hotel rooms and suites as though they were houses in a housing development

The hotel companies get money to fund their building, and the buyers get all the luxury of a hotel without having to move out at the end of the week.

NON-QM Loans

What are NON-QM Loans

NON-QM Loans are portfolio loans that are also called non-conforming loans.

  • Bank Statement Mortgages for self-employed borrowers are considered NON-QM Loans
  • Condo Hotel Unit Buyers and NON-WARRANTABLE Condominium Buyers who cannot show income or are self-employed can qualify for 12 months or 24 months banks statements loans

Mortgage rates are higher and 20% down payment is required.

Condo Hotel Ownership

Owning a condotel gives the buyer all the perks of staying in a hotel of the same brand.

  • So the buyer gets room service, maid service, and a concierge

He or she also has use of all the hotel amenities like the pool and fitness center.

Condo Hotel As Income-Producing Investment

Another advantage of owning a condotel is that the room can be rented out.

  • If the owner plans to be out of the country for a week or two, the hotel can rent out the owner’s room at normal market rates

In exchange for making the booking and managing the space while the owner is gone, the hotel gets to keep 20 to 40 percent of the rental profit.

Risks with Condo Hotel Investments

What are the risks associated with investing in Condo Hotel

There are some drawbacks to this sort of investment. No one can guarantee that the owner will make money through the rental process. After buying the room, paying any maintenance fees, and giving the hotel its percentage of the rental, there may be little money left. Also, local laws may prohibit the owner from living in the hotel for more than a certain number of days every year.

Related> Condotel Financing

Related> Condo Hotel Financing

Related> New condotel financing guidelines

Leave A Reply

Your email address will not be published.

Call Now ButtonCALL NOW