What Is A Condotel?
A Condotel, also referred to as a condo hotel, is a condominium unit in a hotel complex that is owned individually by private owners. Condotels used to be extremely popular during the early 2000’s until the 2008 Real Estate and Mortgage Meltdown when condotel financing completely came to an abrupt halt. Many mortgage lenders such as JP Mortgage Chase, Bank of America, Citibank, US Bank, and other large national mortgage lenders used to finance condotels and non-warrantable condos but after the real estate market crash of 2008, stopped lending on condo hotel units. Most condotels are waterfront properties and are located in resort areas. Florida is the birth of condotels and condotel units are starting to become more in demand due to available condotel financing. Florida Condotel Realtor Ronda Stepp, who is based in Orlando, Florida, is a veteran condotel real estate specialist and expert who specializes in helping buyers of condotel units in the state of Florida. Florida Condotel Realtor Ronda Stepp is also an expert in condotel financing and can assist with Florida Condotel unit buyers in financing their potential condotel purchase.
Benefits Of Condotels
Condotels are becoming more and more popular because condotels are maintenance free. The condotel complex homeowners association manages the condotel units in lieu of the monthly condotel homeowners association fees. Many condotel unit owners can rent out their condotel units when they are not occupying it. The condotel homeowners association will rent the condotel units out in return for a percentage of the revenue. Many condotel unit owners do get a positive cash flow by renting their condotel units and still enjoying the condotel units throughout the year. It is like having a vacation home for free where the revenues of the condotel unit pays for the condotel mortgage payments and expenses.
Condotel Financing Requirements
Condotel mortgage loans are porfolio loans, which means that the condotel mortgage lender holds the mortgage note in house in their portfolio. Up to now, most condotel unit buyers did not access to condotel financing. The great news is that condotel financing is back and condotel unit buyers who dreamed of buying a condotel unit as a second home, vacation home, or investment home can now have the opportunity to purchase a condotel unit with financing available. Here are the condotel financing requirements for primary and second home condotel unit buyers.
1. The condotel unit needs to financially sound with no pending litigation or major building violation.
2. The condotel unit needs to be at least 500 square feet, have a least one bedroom, and have a full kitchen ( kitchenettes are not allowed ).
3. Minimum loan size is $100,000 and maximum loan size is $3 million.
4. 25% down payment, 75% loan to value, is required for primary and second condotel unit buyers. 40% down payment, or 60% loan to value is required if the condotel unit is an investment property and the condotel unit buyer has two or more properties.
5. Condotel unit mortgage loan applicant needs a minimum 680 FICO Credit Score.
6. Maximum debt to income ratios cannot exceed 40% DTI.
7. No prior bankruptcies, foreclosures, deed in lieu of foreclosures, short sale in the past 4 years. Condotel unit buyers with a prior bankruptcy, foreclosure, deed in lieu of foreclosure, short sale will need a letter of explanation as of the extenuating circumstances: Extenuating circumstances acceptable for bankruptcy and/or foreclosure include medical issues, loss of job, and divorce.
8. Foreign Nationals can qualify for condotel financing as long as they have a work visa and are employed either by a U.S. Company and/or a subsidiary of a U.S. Company with no credit scores required. We will help foreign nationals establish credit. Special program for foreign nationals where we offer and assist with auto financing, credit cards, and other forms of credit to foreign nationals.
Contact Florida Condotel Ronda Stepp
Ronda Stepp is a veteran Florida Condotel and Non-Warrantable Condominium Purchase Realtor. Based in Orlando, Florida, Ronda Stepp is familiar with all of the major condotel complexes in the state of Florida as well as new Condotel development projects not just in the Orlando Area, but throughout the state of Florida. Ronda Stepp, of AmeriTeam Realty can be reached at 321-402-4944 her email address is email@example.com .