Condotel Purchase Loans
This BLOG On Condotel Purchase Loans Was UPDATED On March 26, 2017
We all know that not too many lenders offer Condotel Purchase Loans.
- Most sellers of Condo Hotels instruct their realtors not even to entertain a potential buyer who is seeking financing.
- Sellers instruct their listing real estate agents to only accept cash offers.
- Condotel borrowers who Google Condotel Financing, Condo Hotel Financing, Condo Hotel Mortgage Lenders, Condotel Loans, Condo Hotel Loans, or Financing for Condo Hotels, dozens of condo hotel unit lenders are on the search engines offering Condotel Purchase Loans.
- However, not everyone can qualify due to the tougher credit and income requirements.
Buyers Of Condo Hotel Units
Condotel unit buyers in need of Condotel Purchase Loans, The Gustan Cho Team at Nationwide Mortgage & Realty LLC can help. Many buyers of condo hotel units or non-warrantable condominium units contact us and we are able to help most of them with their Non-Warrantable or Condotel Purchase Loans. Condo Hotel Loans and non-warrantable condo financing normally are easier to process and underwrite and can close faster than any other residential loan program.
One Condotel Purchase Loan borrower who I just pre-approved last year had her skeptical real estate agent contact me to grill me how in the world I can get her client’s purchase approved when nobody she knows can do it. I told her no worries and that her client was safe as long as she did not go on a shopping spree and maxed out her credit or her credit profile were to change from now til closing.
Long story short, we closed on the loan.
Non-Warrantable & Condotel Financing Process
For those borrowers interested in obtaining a Non-Warrantable or Condotel Purchase Loan, there are two phases with Condotel Purchase Loans.
- Minimum down payment on first or second home buyers is 25% down payment.
- Non-Warrantable Condos have the same mortgage process as condo hotel units but the down payment requirement is 20% versus 25%.
- Condo Hotel Unit needs to be at least 500 square feet.
- Condotel needs to have at least one bedroom and a full kitchen.
- Condotel Purchase Loans require the Condo Hotel Complex Homeowners Association Manager to complete and sign a one page condominium questionnaire.
- An underwriter will review the questionnaire and if there are no major litigation and the condo hotel project has sufficient reserves, the complex will get approved. This takes 24 to 48 hours.
- APPLY ONLINE at www.gustancho.com and click the APPLY NOW icon on the top right corner of my website.
- Once you submit your online application, I will contact you and we will go over the information.
- I will then send you the formal application along the documents that will be needed to process and underwrite the loan.
- Once I get your signed application and the requested documents, it will be submitted to the credit committee for the final approval.
- Within 48 hours, you should get an official approval from the credit committee.
- We then start processing and underwriting your loan and order the appraisal.
- As long as you get me all the requested documents, the loan can close within two to three weeks, depending on the appraisal.
Please do not hesitate to contact me if you have any questions.