Condotel Loan And Non-Warrantable Condo Financing
This BLOG On Condotel Loan And Non-Warrantable Condo Financing Was UPDATED And PUBLISHED On January 10th, 2020
A Condotel is a condominium unit in a hotel and it is extremely popular in Florida.
- Many lenders has ceased in lending on condo hotel units after the real estate and credit collapse of 2008
- Condotel Financing and Non-Warrantable Loan Programs are one of my areas of specialty in the mortgage business
- Condotel mortgage programs are portfolio loan programs that have been booming in the past year
- Most condotel buyers and realtors in the United States have been having a hard time finding lenders that specialize in condo hotel unit financing
In this article, we will cover and discuss Condotel Loan And Non-Warrantable Condo Financing.
Condotel Financing Updates For Primary And Second Condotel Units
Our new condotel program guidelines is now offering up to a 75% loan to value on primary, second homes, and vacation homes for condotel purchase loans, condotel refinance loans, and condotel cashout refinance loans.
- Our previous minimum loan to value on the purchase, refinance, and cashout refinance condotel loans were set at 70%
- This extra increase 5% increase on condotel loans will open up doors to more condotel loan borrowers
New Condotel Loan Updates On Investment Condotel Units
For condotel borrowers who have investment condotels and not second or vacation home condotel units, our previous maximum investment condotel purchase loan and investment refinance/cashout condotel program had a maximum cap of 50% loan to value.
- The great news is that we have increased the loan to value cap to 60% loan to value from 50% loan to value on investment condotel mortgage programs
How Do I Qualify For A Condotel Loan?
There are two phases in our Approval Process.
- The first is that the condo-hotel project needs to be qualified
- There is a one-page condotel questionnaire form that needs to be completed by the Homeowners Association Manager
- The purpose of this questionnaire is to make sure that the subject Condo Hotel has no structural issues, building code violations, and is in decent financial shape
- If the Condo Hotel project has major structural building code violations or is under bankruptcy, the Condo Hotel unit will not qualify
This condotel questionnaire will get reviewed and approved within 24 hours of submission of the condotel questionnaire form.
New Updates On Condotel Guidelines
The second phase is that the borrower needs to be qualified.
- This is done by borrowers applying online here at www.gustancho.com and clicking the APPLY NOW icon on the top right of this website
- It is the 1003 mortgage application
- I will then review the application and run a credit check
- Minimum credit scores required is 680 FICO, max 40% debt to income ratios
Reserves for both the borrower’s main residence as well as the subject condotel unit.
Condotel Unit Requirements
The condotel unit needs to have a functional kitchen and at least one bedroom and be at least 500 square feet.
- Most condotel mortgage loans range between $100,000 to $3,000,000
- Most condotel loans close in less than 30 days from the date we receive the condotel borrower’s signed application
Required documents such as two years of tax returns, recent paycheck stub, two months bank statements, and other income/asset documentation needs to be provided.