Condo Hotel Morgage Loans

Condotel Loan Requirements

What are Condotel Loan Requirements?

With the new year comes new Condotel Loan Requirements.  Condo Hotel units are becoming more popular than ever and Condotel mortgage loan requests are at an all time high since the real estate and credit collapse of 2008. Condotel Loan Requirements are different than traditional condo or single family home loan requirements.

Condotel Loan are Portfolio Loans

Condotel mortgage loans are portfolio loans.  By portfolio loans, the lender will not be selling a condotel mortgage loan to the secondary market.  They will be holding the loan in their own portfolio.

Condotel Loan Guidelines

A few of our Condotel Loan Requirements include that the Condotel need to be at least 500 square feet, have a separate kitchen area, and at least one bedroom. Efficiency or studio Condotel units do not qualify.  There cannot be any major litigation pending and the Condo Hotel cannot be in financial distress such as a pending bankruptcy.  The Condo Hotel cannot have any major structural issues or pending major building violations as well.

Condotel Loan Questionnaire

There is a one page Conotel Questionnaire form that needs to be completed by the Condo Hotel Homeowners Association representative that will ask these specific questions.

 Minimum Credit Scores for Condotel Loan

Another Condotel Loan Requirement is that the  Condotel unit mortgage loan borrower needs a minimum credit score of 680 FICO.  If your credit scores fall below the required 680 FICO, please contact me at 262-716-8151 or visit me at  www.gustancho.com and I will help you in boosting your credit score prior to submitting a formal Condotel mortgage application.

One year reserves are required for Condotel Loan Programs

Reserves is another Condotel Loan Requirement.  We require that you have at least a one year reserve of principal, interest, taxes, and insurance for the subject Condotel unit as well as your principal residence.  The Condotel Loan Requirement is that you have at least three months of reserves in cash or stocks and the remaining nine months can be in retirement funds, annuities, or other assets.

 25% down payment for Condotel Loan Purchase

Other Condotel Loan Requirement include a minimum down payment of 25% for second homes.  If you own more than one Condotel unit already, your Condotel purchase will be considered an investment Condotel.

40% down payment required for investment Condotel Loan Programs

Condotel Loan Requirement with investment condotel units are the same as second home Condotel units except that we require a 60% loan to value.  Reserve requirements are the same.

Minimum Loan Size

Minimum loan size on Condotel loans are set at $100,000.  It can be a lower loan amount on a case by case basis.  There is no maximum loan amount.  The reason there is a minimum loan amount Condotel Loan Requirement is because it takes the same amount of time, same amount of paperwork, and the process is the same to underwrite a $100,000 Condotel mortgage loan as it is a $1 million dollar Condotel mortgage loan.

If you need more information or questions on our Condotel Loan Requirement, contact me at  262-716-8151 or visit me at www.gustancho.com .

Gustan Cho NMLS ID 873293

Related> Condo Hotel Financing

Related> Florida Condotel Loans

Related> Florida Condo Hotel Mortgage Lender

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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