Message To Florida Realtors: Condotel Financing
If you are a veteran Florida realtor, you probably are aware that condotel financing is next to extinct. The condotel financing market has dried up since the real estate and credit collapse of 2008. Large banks such as JP Morgan Chase, Wells Fargo, Citibank, and Bank of America has stopped lending on condo hotel units. The abrupt halt in condotel financing by mortgage lenders have forced Florida realtors to only entertain cash offers to condo hotel unit buyers. Great news for Florida real estate agents is that I now offer condotel financing to qualified condotel purchasers.
Florida Condotels: Condotel Financing In Florida
Florida is the birth of condo hotels and there are thousands of condotel units throughout the state of Florida. Condotel mortgage loans are portfolio loans and we now offer 30 year condotel financing via 3/1 ARM, 5/1 ARM, and 7/1 ARM. The index is based on the Cost Maturity Treasury ( CMT: One year treasuries ) and the margin is at 3.0%. Here are the basic qualification requirements:
1. Condo Hotel Complex needs to qualify: No major litigation and the condo hotel complex needs to be in good financial shape with no major building violations or structural issues.
2. Condotel unit needs have at least one bedroom and a functional kitchen which includes dishwasher, full size refrigerator and stove and preferably a minimum of 500 square feet.
3. Condotel Financing buyer needs to have minimum 680 FICO credit scores.
4. Maximum borrower’s back end debt to income ratios needs to be no greater than 40% DTI.
5. Minimum down payment of 25% for primary, second home, and vacation home condotel financing.
6. Minimum down payment of 40% for investor condotel financing program.
7. 75% loan to value for refinance and cash out refinance for second/vacation condotel financing.
8. One year reserve for both primary residence and condotel unit housing payments. Reserves do not have to be in cash. IRA, 401k, securities, and other forms of liquidable assets can be used to meet one year reserve requirements.
If you are a Florida realtor and are interested in learning more about Condotel Financing, please contact me at 262-716-8151 or visit me at www.gustancho.com .