This Article Is About Condotel Mortgage Rates Rise On Adjustable Rate Mortgages
Mortgage rates have gone up nine weeks in a row.
- FHA mortgage rates were 3.25% just a little over a month ago and now it is at 4.5%
- Conventional mortgage rates were at 3.5% and now are almost at 5.0%
- Condotel mortgage rates have also gone up
- 7/1 ARM condotel mortgage rates were trading at the 5.25% mark for second homes but now they are trading at 5.625% amortized over 30 years
In this article, we will discuss and cover Condotel Mortgage Rates Rise On Adjustable Rate Mortgages.
Condotel Mortgage Programs
We offer condotel mortgage loans in California, Illinois, and Florida.
- If the condotel unit is located in other states, please contact us at Gustan Cho Associates
- Gustan Cho Associates will refer condotel lenders who specialize in condotel financing in your state
- Condotel mortgage programs that are available in today’s market are mainly Adjustable Rate Mortgage products, also known as ARM products
- Condotel mortgage loans are portfolio loans
- Portfolio loans mean the lender holds and services the condotel mortgage loan
- Portfolio lenders do not sell it to the secondary market
- 15 year and 30 year fixed rate condotel mortgage loans are nonexistent that I know of
- There are 3/1 ARM, 5/1 ARM, and 7/1 ARM condotel mortgage loan products that we offer
- They are all amortized over 30 years
- Minimum loan amounts start at $100,000 up to $3,000,000
There is no prepayment penalty.
Condotel mortgage rates
Condotel mortgage rates start at 5.25% on a 3/1 ARM program.
- Condotel mortgage rates for a 5/1 ARM is set at a starter rate of 5.5%
- Condotel mortgage rates for a 7/1 ARM start at 5.625%
- The index is based on the Cost Maturity Treasury and the margin is set at 3.0%
After the initial rate period expires, the new adjustable mortgage rate cannot be lower than the starter rate.
Condotel Mortgage Loan Guidelines
Basic condotel mortgage loan requirements are as follows:
- The borrower needs a minimum credit score of 680 FICO
- Maximum debt to income ratio of 40% including the new condotel purchase mortgage loan
- Minimum 75% loan to value on condotel purchase loans and condotel refinance loans for primary and second homes
- 60% loan to value on investment condotel mortgage loans
One year reserves for new condotel purchase and any real estate owned.
Condotel Unit And Condo Hotel Requirements
Condo Hotel complex needs to be in good financial and structural condition. A one-page condotel questionnaire form needs to be completed by the Condotel Homeowners Association manager which consists of whether the condo-hotel complex has pending litigation and/or any major building violation issues.
Condotel unit must have at least one bedroom and a functional kitchen.
The condotel complex nor its subsidiaries cannot be under bankruptcy protection nor have pending litigation.
If you have any questions, contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email me at gcho@gustancho.com. You can also subscribe to our daily free mortgage and real estate newsletter at www.gustancho.com.
July 9, 2013 - 3 min read