Condotel Mortgages: Financing For Condo Hotel Units

This BLOG On Condotel Mortgages Was UPDATED On June 23, 2017

What’s New About Condotel Mortgages?

Gustan Cho Associates are experts in Condotel Mortgages and Non-Warrantable Condominium Financing.

• We can help Buyers who are interested in Condo-Hotel units or Condotels
• Condotel Unit owners can also refinance their condo hotel units

In this article, we will discuss and cover Condotel Mortgages: Financing For Condo Hotel Units.

Condotel Mortgages And Application Process

The Condotel Application Process is a two-step mortgage process:

• The first stage of the application process is that the condotel unit buyer needs to be qualified
• The second stage is that the condotel unit and condo-hotel complex needs to be approved

Condotel Mortgages: Condo Hotel Complex

• Condotel Lenders want to make sure that the Condo Hotel Complex is in good structural condition and financial condition
• Condominium Questionnaire needs to be completed by the Condo Hotel Complex HOA Manager
• Condotel Lender is portfolio lenders and wants to make sure that the Condo Hotel Complex does not have major pending litigation and has sufficient reserves
• Condotel Unit Mortgage Applicants can apply online on this website by clicking APPLY NOW 

Condotel Pre-Approval Process is similar to residential mortgages like FHA and Conventional Loans.

Condotel Financing Requirements

There is no cap on investor concentrations with Condotel Financing mortgage loans at all.

• Minimum credit scores borrowers need to have is 680 FICO
• One year reserves for the main residence and proposed Condotel purchase P.I.T.I.
• The loan to value with a Condo Hotel purchase mortgage loan is a 75% loan to value on primary and second home condotel mortgages
• 60% Loan To Value on Condotel Mortgages if the borrower already owns two or more properties
• A single entity may own more the 10% of the condotel units in a project
• The loan to value with a condotel refinancing is 75% for rate and term

Condo Hotel unit owners need cash-out refinance mortgages on a free and clear unit, the maximum loan to value on a cash-out refinance is that is 50% loan to value.

Minimum Credit Scores on Condotel Financing

There is a minimum credit score requirement.

•  The minimum credit score to qualify for Condotel Financing is 680 FICO
• If your credit scores fall below that, I can help you boost your credit scores or repair your credit so we can get you to the 680 credit score requirement
• We offer 3/1 ARM, 5/1 ARM, and 7/1 ARM Condo Hotel Mortgage Loan Programs, amortized over 30 years
• There is no maximum loan size on Condotel Financing Mortgage Loans