Florida Condotel Loans And Non-Warrantable Condo Loans

This BLOG On Florida Condotel Loans And Non-Warrantable Condo Loans Was UPDATED And PUBLISHED On July 30th, 2020

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

  • The condotel 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 Morgan Chase, Citibank, and Bank of America used to lend on Condotel and non-warrantable condo loans
  • But these big banks have 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
  • The good news is that Condotel And Non-Warrantable Condo Loans are now back in full swing

Qualifying For Condotel Loans And Non-Warrantable Condo Loans

How 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
  • The 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 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.

  • The 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

What are 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 need 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 condotel 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 us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com or visit us at www.gustancho.com.

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