This BLOG On Condotel Financing Guidelines Require 25% Down Payment Was UPDATED On June 16th, 2019
Condotel Financing Guidelines Require 25% Down Payment for owner occupant and second home condotel financing and 40% down payment on investment condotel units. A condotel unit is a condominium unit within a hotel that is owned by an individual or private investors.
- A condotel used to be extremely popular in Florida in mid-2000s
- However, with the financial and real estate meltdown, condotel units have also suffered a major decline in values
- To top it off, all major condotel lending institutions have halted condotel financing so those who owned condotel units
- Most condotel unit owners have interest rates in the high 8.0% range
- Condotel Financing came to an abrupt halt back in mid-2008 right after the 2008 subprime crash
- Many were stuck with their current mortgages
- New condotel buyers were forced to buy their condotel units with cash due to lack of condotel financing
- Values of condotel units have plummeted to below construction costs
- The great news is that condotel financing is back
- Condotel unit sales have seen double-digit growth and condotel unit prices have seen record price hikes in the past 12 months due to new Condotel Financing Guidelines making financing possible
- The reasoning for this is due to the rebound in the real estate market and the comeback of condotel financing
- Condotel mortgage loans are still a rare specialty by mortgage brokers but mortgage brokers like myself specialize in condotel loans
Condotel financing is back.
- There was a time for the past three years that not a single mortgage lender would touch a condotel unit.
- Condotel financing was totally unheard of
- However, lenders like myself specialize in condotel financing from $100,000 up to over $3,000,000 nationwide
Condotel Financing Programs
The condotel financing products I have to offer are 7/1 ARM, 5/1 ARM, and 3/1 ARM amortized over 30 years.
- The condotel unit has to have at least one bedroom and a separate kitchen
- The ARM product is based on the Cost Maturity Index and the margin is 3.0%
- Starter interest rates are at 5.0%
- The condotel unit complex needs to be both in good financial standings and structurally safe with no pending major building violations
Condotel Financing Guidelines: Owner Occupant And Second Homes
Condotel financing borrowers need a minimum credit score of 680 FICO and need one year’s reserves for both their main residence as well as the subject condotel unit.
- The maximum back end debt to income ratio cannot be more than 43%
- The maximum loan to value condotel financing terms are 75% for both condotel purchase loans and condotel refinances loans on owner occupant and second home condotel financing
- For condotel unit borrowers who are seeking investment condotel loans, the maximum loan to value is 60%
- Please contact us at Gustan Cho Associates 1-262-716-8151 or text us for faster response or email us at email@example.com
- Condotel mortgage loan applicant with credit scores below 680 FICO, contact us on boosting credit scores to qualify for Condotel Financing