Condotel Financing In Florida And California Requirements

This BLOG On Condotel Financing In Florida And California Was UPDATED On August 25th, 2018

Condotel Financing In Florida and California is back. Condo hotel unit buyers and owners have been experiencing extreme difficulty in trying to obtain Condotel Financing in Florida and California as well as the rest of the nation for both purchase and refinance mortgages.

• Many owners currently have mortgages that range from 6% or higher
• This is because they got their mortgages prior to the real estate crash of 2008 when mortgage rates were much higher than it is today
• I have a client who I am currently working on her financing where her interest rate is at 8.75% and had an extremely difficult time searching lenders

In this article, we will discuss and cover Condotel Financing In Florida And California Requirements.

Who Does Condotel Financing In Florida And California?

Most lenders do not want to finance condo-hotel units.

• Whether it is a purchase or refinance mortgage, the reason lenders do not want to finance condotel units and non-warrantable condominiums are because they need to hold it in-house and the portfolio the loan
• For unit owners needing to refinance their current loan, they should see if their current lender will refinance their current loan
• Most of the owners come back to me and tell me that their bank is not willing to refinance their existing mortgage loan
• Most owners have their condo hotel mortgages with big banks like Chase and Wells Fargo
• Banks like Chase WILL NOT refinance a condo-hotel unit  mortgage
• It does not matter whether the owner is a preferred client, or whether the LTV is below 50% and the condo unit is cash-flowing

Unfortunately, most owners are left stuck with their high mortgage interest rates after exhausting their efforts in finding a lender that will refinance their condo hotel unit.

Condotel Financing Guidelines

For those who need condotel financing, please contact us at Gustan Cho Associates at 262-878-1965 or text me on my cell for faster response at 800-900-8569. Borrowers can also email me at gcho@gustancho.com. The team at Gustan Cho Associates are specialists in condotel financing in Florida and California as well as the rest of the country.  Get pre-approved now for a condo-hotel unit loan by clicking here and completing the 4-page 1003 APPLY NOW FOR CONDOTEL FINANCING.  My staff and I are available 7 days a week to take borrowers’ calls and answer all of your questions 7 days a week, including evenings, weekends, and holidays.

Many sellers of condo-hotel units normally want cash buyers for their units since lenders are extremely rare.  I can help potential buyers get a purchase loan on their condo hotel condominiums.

Condo Hotel Financing Process

Here is the condo hotel mortgage application and underwriting process:

• The borrower needs to complete a condominium questionnaire provided and completed by the condo hotel homeowners association manager
• The condominium questionnaire is then reviewed by an underwriter to see whether the condo-hotel complex does not have any major pending litigation
• Condo Complex needs to be in compliance and if it does, the unit is approved and the mortgage process can continue
•  If the condotel qualifies, we then take borrowers preliminary application ( APPLY NOW ) and the loan gets processed and gets underwritten
• Part of the underwriting and approval process includes the file being reviewed by the credit committee
• In order for the file to go to the credit committee, the underwriter signed off on the loan and the credit committee will just need to review it
• Once the credit committee agrees with the underwriter’s recommendation, the loan file gets back to the underwriter and conditional approval is issued

The conditions need to be worked and once the borrower provides all the conditions, the file is reviewed by the mortgage processor and submitted for a clear to close.

Condotel Financing In Florida And California: Purchase Guidelines

On purchase loans here are the requirements:

• 25% down payment on first and second homes
• 40% down payment if buyers have more than 2 properties
• One year reserves of principal and interest for each property borrower owns
• Reserves do not have to be in the form of cash but needs to be liquid investments such as securities accounts, pension accounts, and other documented asset accounts
• Condotel mortgages and non-warrantable condominium loans are adjustable rate mortgages amortized over 30 years
• ARMS available are 3/1 ARM, 5/1 ARM, and 7/1 ARM

If any of you are interested in purchasing or refinancing a condo hotel or non-warrantable condominium please do not hesitate to contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com.