Portfolio Loan Programs

Condominium Portfolio Loans California Mortgage Guidelines

Gustan Cho Associates are mortgage brokers licensed in 48 states

This article cover condominium portfolio loans California mortgage guidelines:

We will cover the following topic in this article:

  • Qualifying for a condominium loan in California
  • Difference between warrantable versus non-warrantable condominiums
  • Qualifying for a non-warrantable versus warrantable condo loan

Condos are considered riskier loans by lenders. Non-warrantable condos are considered riskier loans by lenders. Gustan Cho Associates can help condo borrowers with either non-warrantable and warrantable condo mortgages.

Qualifying for a Condo Loan in California

California is one of the largest states in the United States. Gustan Cho Associates is a mortgage company licensed in multiple states. We have no lender overlays on government and conventional loans. We originate and fund condominium portfolio loans in California as well as dozens of other states.

Many countries in the world are not as large as California. Condominium Financing is considered much riskier than single-family homes. For homebuyers who want to purchase a condo with an FHA Loan, the Condo Complex needs to be. FHA Approved.

Same with VA. The Veterans Administration no longer has a maximum loan limit on VA loans. Veteran Borrowers who want to purchase a condo need to purchase in a condo complex with a VA Loan. To purchase a condo with a conventional loan, the condo needs to be a warrantable condo.

Gustan Cho Associates are mortgage bankers, correspondent lenders, and mortgage brokers on Condominium Portfolio Loans California and dozens of other states.

Warrantable Condos Versus Non-Warrantable Condominiums

Warrantable Condos are condominiums where 51% or more of the occupants of the condo complex are owner-occupants. Non-Warrantable condominiums are condos where 51% or more of the occupants of the condo complex are non-owner occupants.

Fannie Mae and/or Freddie Mac will not purchase non-warrantable condo loans on the secondary market. Non-Warrantable Condos can only be financed with Portfolio Loans.

Portfolio Loans California

The state of California is one of the most populous states in the U.S.  California also has one of the housing values in the country and thousands of condominium complexes. Qualifying For Condominium Portfolio Loans California is often more difficult than qualify for single-family home loans.

The reason is that most mortgage lenders consider condominiums riskier than single-family homes.

Gustan Cho Associates is California licensed mortgage lender with no lender overlays on government and conventional loans. We also are also condominium portfolio lenders. As Gustan Cho Associates had another banner record year in condo loan closings for 2020.

We are trying to get a jump start into 2021 with our Condominium Portfolio Loans:

  • Condotel Financing
  • Jumbo Condominium Portfolio Loans California
  • Non-warrantable condo mortgage loans
  • Other portfolio loans mortgage products such as non-QM loans and bank statement loans
Please consider using Gustan Cho Associates as the preferred Condominium Portfolio Lender of Choice.

Asset Depletion Mortgage Loan Program

Gustan Cho Associates offers multiple asset depletion mortgage programs.

  • No Minimum FICO Credit Score
  • No Required Pledged Funds
  • Can be Combined with Wage or Fixed Income

Jumbo Mortgage Loans

We also have California Condominium Jumbo Mortgage Loans

We also have California Condominium Jumbo Mortgage Loans

  • 95%  Loan to Value, LTV with a 740 FICO credit score
  • 90% LTV up to $1.5 million
  • 75%  Loan to Value, LTV,  up to 2.0 Million Loan Amount
  • 65% up to 3.0 Million Loan Amount
  • Credit scores down to 500 FICO

Bank statement Jumbo loans for self-employed borrowers available.

Non-Warrantable Condos

Non-Warrantable condominium units are condos that are non-owner occupied in a condo complex. A condo complex needs to conform to Fannie Mae and/or Freddie Mac Guidelines on warrantable condos.

  • Condo complexes with more than 50% of the condos in the complex owned by non-owners are classified as non-warrantable condos
  • Fannie Mae and Freddie Mac will not purchase any condo loans in a non-warrantable condo complex

California Condominium buyers who need financing on non-warrantable condos need to go with a lender that does Condominium Portfolio Loans.

Qualifying for a Non-Warrantable Condo Loan

Here are the Non-Warrantable Condo Financing Requirements:

  • Buyers need to put a 20% down payment
  • 80% Loan to Value,  LTV,  up to 625,500
  • 75%  Loan to Value, LTV,  up to 1.5 Million loan amount (Primary home or Secondary home/Vacation Home Units)
  • Investment condotel, non-warrantable condos, and portfolio loans have a maximum loan to value caps at 60% of the appraised value so a 40% down payment

Condo Hotel Financing

Condo-Tels or Condo Hotel Units are condominium units in a hotel such as the Marriott, Hyatt, or other Hotels.

  •  75%  Loan to Value, LTV,  up to 1.5 Mil (Primary home or Secondary  Home/Vacation Home condotel units)
  • Investment  condotel units (maximum loan to value,  LTV, is 60%)
  • With condotel mortgage loans, the condotel project needs to qualify
  • By qualification, the condotel unit needs to be at least 500 square feet, have at least one bedroom, have a functional kitchen with a full-sized refrigerator and dishwasher
  • The condo-hotel project needs to be structurally and financially sound with no major building/structural violation and no pending major litigation or verge of bankruptcy
  • Reserves
  • The minimum loan amount is $150,000

Cash-Out Refinance Mortgage Loans

  • Up to 1.0 Million Cash in Hand
  • 680 Minimum FICO Credit Score / up to 75% Loan to Value,  LTV

How Fast Can Condominium Portfolio Loans Close

Ability to close in four weeks from the date of signed mortgage application and approval of the condo-hotel project.

30 Year Condotel Mortgage Loans

Gustan Cho Associates Mortgage Group offers 30-year condotel, non-warrantable condos, and condominium portfolio loans California as well as in 21 other states in the United States.

  • They are 3 years, 5 years, 7-year adjustable-rate  ( ARM ) condotel, non-warrantable condos, and portfolio loans amortized over 30 years
  • The index is based on the Cost Maturity Treasuries ( CMT – One-year treasuries ) and the margin is fixed at 3.0%
  • The adjustment mortgage rate cannot be lower than the starter rate

Please contact Gustan Cho NMLS 873293 at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends.

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