Florida Condo Hotel Financing And NON-QM Loans

Gustan Cho Associates are mortgage brokers licensed in 48 states

This BLOG On Florida Condo Hotel Financing Was Updated On October 28th, 2018

Condominium buyers who are in the market for a Condo Hotel in Florida, they may run into challenges in finding Condo Hotel Mortgage Lenders.  Most Florida Condo Hotel Financing lenders who used to finance Condo Hotels in Florida have stopped lending on Condotels.

  • Banks like J.P. Morgan Chase, Wells Fargo, Citibank, and Bank of America used to be Florida Condo Hotel Financing Lenders but have completely stopped
  • Although you might have your Condo Hotel financed through their banks, they are likely not to refinance your Condo Hotel
  • Most Condo Hotel owners have given up on financing a Condo Hotel or refinancing their Condotel.
  • Good news is that Condotel Financing is back

The Team at Gustan Cho Associates are experts in condotel financing as well as other alternative lending and non-qm loan programs. Condotels and other alternative lending loan programs close in 21 days or less.

Florida Condo Hotel Financing Is Back After 2008 Mortgage Meltdown

Which means Florida Condo Hotel Financing and non-QM loans

Condo Hotels is very popular in the state of Florida and always has been.

  • The condotel market used to be very strong in Florida until the subprime meltdown back in 2008
  • Then due to lack of Florida condo hotel financing, condotel units took a major turn for the worse and dropped in value
  • Many people still want to own condotels
  • However, due to the tough financing standards, they cannot afford the 25% down payment
  • Condotels make popular second homes
  • The great part about condotel ownership is owners can make substantial income when not using it
  • A major hurdle why we do not have many more Condo Hotel investors is due to the fact that Condo Hotel Financing has almost become extinct
  • Only a handful of lenders, myself included, can finance Condo Hotels in Florida
  • Many sellers are aware of the scarcity of Condo Hotel Financing that most of them will only entertain cash offers
  • Borrowers can now qualify for a mortgage on Condo Hotel purchase and your Condotel Refinance
  • 75% Loan To Value On Condotel Refinance Mortgage Loans on condotels that are primary and/or second homes

60% Loan To Value On Condotel Refinance Mortgages on condotels that are investment properties.

Florida Condo Hotel Financing Requirements

Here are the basic Florida Condo Hotel Financing Requirements:

  • Condotel needs to be at least 500 square feet with at least one bedroom and fully functional kitchen
  • Minimum loan amount $100,000
  • 25% down payment requirements for primary homes and second homes
  • 40% down payment required for borrowers who have two or more properties and need condotel financing as an investment home

One year reserves for primary home and any other real estate held by the borrower:

  • Reserves do not have to be in cash
  • Can be retirement, stocks & bonds, and other forms of assets

Adjustable Rate Mortgages: 3/1 ARM, 5/1 ARM, 7/1 ARM; Index based on CMT and margin set at 3.0%.

NON-QM Loans And Alternative Financing

What are the financial requirements for the Florida Condo Hotel?

The Gustan Cho Team has NON-QM Loans for self-employed borrowers.

Here are some highlights on NON-QM Loans:

Home buyers interested in purchasing a condotel unit or non-warrantable condominium in Florida, please contact me at 262-716-8151 or text us for faster response. Or email us at [email protected].