Florida Condotel Purchase Loans Is Now Back Full Swing

This BLOG On Florida Condotel Purchase Loans Was UPDATED On October 29th, 2018

Condo Hotels are very popular in the state of Florida.

  • A Condo-Hotel, also known as a Condotel, can be a great investment for those who are looking for vacation second homes
  • Investment condotel units are also gaining popularity due to the comeback of condotel financing
  • Owners can utilize their condotel units anytime and it can be rented when they are not occupying it

In this article, we will discuss and cover condotel mortgage guidelines.

Benefits Of Condo Hotel Ownership

Why Florida Condotel Buying loans is now back in full swing

Benefits Of Owning A Florida Condo-Hotel Unit:

  • Condotel unit owners can use it anytime they like throughout the year
  • When not occupied by the owner or their families, the condo-hotel HOA can rent it to generate income
  • Condotels can be rented daily, weekly, monthly by the HOA staff
  • Many condotel unit owners make positive cash-flow on their units and can cover all of their mortgage and fees and still get positive cash flow

Florida Condotel purchase loans are back and very much in demand. For buyers that in the market to purchase a Condotel,  The team at Gustan Cho Associates can help buyers with their Florida Condotel purchase loans.

Types Of Florida Condotel Purchase Loans

Condotel loans used to be hard to come by.

  • Most banks such as Wells Fargo, Chase, Bank of America, and Citibank stopped Financing Condo-Hotel units
  • Most transactions were conducted in cash and financing was unheard of
  • The team at Gustan Cho Associates Mortgage are condo-hotel lending experts

If anyone has any questions, please contact us at 262-716-8151 or text us for faster response.  Or email us at [email protected]

Here Are The Florida Condotel Purchase Loans

What are the types of loans Condotel Florida

Gustan Cho Associates specializes in helping condotel unit buyers qualify for financing on:

  • Condotels and Non-Warrantable Condominiums
  • Primary, Second, and Investment Financing
  • Florida Condotel purchase loans
  • Condo Hotel Refinance Loans
  • Condo Hotel Cash-out Refinance Loans

Florida Condotel Purchase Loans Lending Requirements

25% Down Payment for condotels units:

  • 20% down payment for non-warrantable condominiums that are owner occupant and/or second homes
  • 40% down payment or 60% Loan To Value if the condo is an investment property
  • This means that the unit owner already owns two other properties besides the subject property
  • Minimum loan size is $100,000
  • Maximum loan size is $5 million
  • Refinances are 75% LTV on primary and second homes and 60% LTV on investment properties
  • 7/1 ARM, 30-year amortization
  • Index based on the CMT (Cost Maturity Index )
  • 3/1 ARM and 5/1 ARM condotel financing mortgage loans are available also
  • 1-year reserve in cash and/or stock, bonds, retirement funds or other liquidable assets
  • No prepayment penalty
  • Condominium needs to be at least 500 square feet
  • Condo units need to have 1 bedroom plus and a full kitchen
  • Studios will not qualify for condotel financing nor non-warrantable condominium portfolio mortgage loans
  • We can classify it as a second home if the borrower does not have other real estate besides personal residence
  • We can classify it as an owner-occupied residence if the borrower does not have any other properties

Florida Condotel Purchase Loans is one of my specialties.  Please contact us at Gustan Cho Associates at 262-716-8151or text us for a faster response. Or email us at [email protected] Condotel unit buyers can also email us at [email protected] with any questions or can apply online at www.gustancho.com.

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