Florida Condotel Loans And Non Warrantable Condo Loans

This BLOG On Florida Condotel Loans And Non Warrantable Condo Loans Was UPDATED On July 6, 2017

Condotel and non warrantable condo buyers are still having a hard time getting Florida condotel loans and non warrantable condo loans until now.

  • The Florida condotel loans and non warrantable condo loans market has really dried up since the real estate and credit collapse of 2008. 
  • Many mortgage lenders like Wells Fargo, JP Mortgan Chase, Citibank, and Bank of America used to lend on Florida Condotel loans and non warrantable condo loans but has halted lending on them since 2009. 
  • Most condotel sellers and realtors representing sellers of condotels and non warrantable condos realize that financing condotels and non warrantable condos are extremely difficult so they will not entertain any offers other than cash offers.
  • Good news is that Florida Condotel Loans And Non Warrantable Condo Loans are now back in full swing.

Qualifying For Condotel Loans And Non Warrantable Condo Loans

The good news is that I specialize in condotel loans and non warrantable condo loans.

  • Lending requirements on Florida condotel loans and non warrantable condo loans are somewhat different than traditional condo or home mortgage loans. 
  • One of the mortgage lending criteria that is required is that the condotel unit or non warrantable condo unit needs to be qualified as well as the borrower. 
  • The unit needs to be 500 square feet.
  • Unit needs to have a separate kitchen and at least one bedroom. 
  • The condo hotel or condo complex cannot be in financial distress nor can it be in a major litigation. 
  • Many condotel units and non warrantable condo units that get denied for condotel loans and non warrantable condo loans are projects that are in the middle of a bankruptcy, or have major structural issues.

Minimum Loan Amount

There is a minimum loan amount Condotel loans and non warrantable condo loans.

  • Minimum loan amount is $100,000.
  • There is no maximum loan amount on Condotel Loans and Non Warrantable Condo Loans.

Minimum Credit Scores On Condotel Loans And Non Warrantable Condo Loans

The borrower does need a minimum credit score of 680 FICO.

  • Minimum down payment on primary and second residences condotel loans is 25%.
  • Minimum down payment on investment homes is 40% on condotels.
  • Non-Warrantable Condos require 20% down payment.
  • The condotel lender will also require at least a one year reserve of principal, interest, taxes, and insurance on all properties owned by the borrower. 
  • Only three months of reserves needs to be in cash and the balance can be in other assets such as retirement funds, securities, or liquid assets.

Programs On Condotel Loans And Non Warrantable Condo Loans

The only mortgage programs available in Florida condotel loans and non warrantable condo loans are adjustable rate mortgages; 7/1 ARM, 5/1 ARM, and 3/1 ARM programs amortized over 30 years.

If you are interested in condotel loans and non warrantable condo loans, please contact me at 262-716-8151 or email me at gcho@gustancho.com or visit us at www.gustancho.com .

Gustan Cho, NMLS ID 873293
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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