Condotel And Non-Warrantable Portfolio Loan Programs

We can lend on co-ops, non-warrantable condos, and condotels in most of the 50 states.
Portfolio Loan Program sizes of condotel and non-warrantable condominiums as large as $3 million and as small as $100K allowed.
Up to 80% LTV for owner occupied and 2nd homes. (condotel max LTV is 75%)
75% Loan To Value cash out for owner occupied and 2nd homes.
Investment allowed at up to 60% LTV.  We allow up to 10 financed units and 15 total REO including cash out loans.
Limited review of the co-op or condo. Typically only  co-op or condo cert. and the master insurance policy is required.
$75k on a case by case basis with additional rate adjustments

Our investor prefers same building comparables on appraisals
Only one appraisal required regardless of loan amount.
For all files, including co-ops, we can use broker or borrower’s attorney for the closing and title work.
Typically only one stock cert, one lease, and one security instrument needed for co-ops.
All specialty programs can be used in conjunction with co-ops, non-warrantable condos, and condotels: Asset Depletion, Work Visa/Expat, No Credit / Limited Credit, Foreign National, NOO cash out etc.
Up to 6% seller’s concessions allowed for closing costs including upfront HOA dues.
Two week rush closings are available.

Minimum Requirements For Portfolio Loan Programs

Condotel units and/or non-warrantable condominium units need to be a minimum of 500 square feet.
Must have at least one separate bedroom and a full kitchen. No studios or kitchenettes allowed.
Large flip tax allowed case by case.
No deed restriction allowed on subject property.
No pending litigation involving structural or construction items allowed. Litigation for other reasons can be reviewed case by case, typically at a reduced LTV.
Escrows required.
Must have 100% replacement coverage or agreed amount endorsement if co-insurance is present.

Terms Of Condotel And Non-Warrantable Portfolio Loan Programs

Maximum debt to income ratio of borrower cannot exceed 40% DTI.
80% LTV up to $1 million loan amount with reduced LTV’s up to $3 million
30 year amortization term
No prepayment penalty on all portfolio loan programs
2/2/6 caps, 1-year CMT Index, 3.0% Margin, Floor= Note Rate
Escrows required

Foreign National Loan Programs

Foreign Nationals who are buying a vacation home or investment property in the US. They may not have any U.S. credit or low scores due to limited US credit.
•US Citizens or Green Card holders living and earning income abroad with no recent or limited US credit, or a low score due to a lack of credit.
•50% LTV program.
•Some exceptions to 65% LTV for citizens of the UK, Canada, and Australia with a foreign credit report, provided that they are buying a second home in a resort area as a true vacation home.
•12 months PITI reserves for all properties owned in all countries for loan amounts up to $1 million.
•Max Debt To Income Ratio is 40% DTI.

Other Requirement For Foreign National Portfolio Loan Program

We doesn’t require a foreign credit report, alternate trade lines, or require VORs.
Our investor will consider using foreign assets for down payment AND reserves including foreign retirement funds, but funds for closing must be moved to US prior to the funding date.
Foreign assets used for reserves do not need to be moved to the US.
Cash our refinances are allowed with no title seasoning.
Assets used for the purchase less than 6 months prior to application date are sourced and seasoned 60 days.
All collateral types are allowed including non-warrantable condos, condotels, co-ops, Jumbo & Super Jumbo.
Loan amounts from $100K to $3 million

Foreign National Borrower Requirements

Borrower must obtain a social security number or individual tax identification number (ITIN) prior to closing. Exceptions apply if we have evidence the ITIN application has been sent to the IRS by a US based CPA or attorney. We can provide a pre-approval letter to the CPA or attorney for expedition as well as attorney resources.
Passport or Visa allowing entry into the US is required.
This is a full documentation loan in terms of income, assets, deposits, etc.
Income needs to be documented on foreign tax returns, W-2 equivalents, etc. CPA letters are not allowed.
2nd homes need to be in a resort area. Homes is metropolitan areas will usually be called an investment. Typically, to call it a 2nd home, we don’t want them to own any other properties in the US.
The money for the down payment & closing costs needs to be moved to US account before closing. Deposits must be sourced.

Borrowers Credit And Debt Profile Requirements

All foreign debts including any PITI info need to be added to the 1003 shown in USD equivalent.
All income, assets, and PITI info must be translated by a US based certified translation company.
Any US citizen or US Permanent Resident (Greed Card holder) living abroad must have filed the previous years US tax returns while living outside the US.

Any US based certified translation company can be used.

Maximum Debt To Income Ratios cannot be greater than 40% Debt To Income Ratio
50% LTV up to$3 million loan amount
30 year amortization
No prepayment penalty
2/2/6 caps, 1-year CMT Index, 3.0% Margin, Floor= Note Rate
Escrows required

Asset Depletion Porfolio Loan Program

Our investors asset depletion program is used to establish monthly income for borrowers who need additional income to qualify for a home mortgage based on their liquid assets (can use retirement assets if borrower is over 59 ½).
Automated calculator uses a 4% rate of return on the assets PLUS a depletion amount based on the borrower’s age and social security administration’s life expectancy.
Assets are used at 100% face value including retirement accounts (retirement only used if borrower is age 59 ½ or older).

Loan sizes as large as $3 million and as small as $100K allowed.
Up to 75% LTV for owner occupied and 2nd homes including non-warrantable condos, Co-ops, Condotels, and cash out.
Investment properties allowed up to 60% LTV.
Investor allows up to 10 financed units and 15 total REO including cash out loans.
Assets are used at 100% face value with no reduction for stocks, bonds, mutual funds or other publicly traded accounts.
Cash out can be used as income on a case by case basis.
No rate adjustments apply to the program, but maximum LTV is 75%.

Only one appraisal required regardless of loan amount or cash out.
Asset depletion can be used in conjunction with all other income sources such as W-2, self-employed, pension, social security or rental income. (can’t be used in conjunction with dividend/interest income for same assets)
All specialty programs can be used in conjunction with asset depletion and all collateral types are allowed i.e.: Multi Family, Hobby farms/ acreage, Work Visa/Expat, No Credit / Limited Credit, 2-4 family, Non-warrantable condos, Co-op, Condotels, NOO cash out etc. .

Assets must be held in US account.
REITS, Hedge Funds, Venture Capital, Notes Payable, or other private investments typically cannot be used.
Funds inside an annuity and cash value or life insurance cannot be used.
Trust assets can be used if the borrower has 100% unrestricted access to the funds and all trust documents and asset statements are provided.
Accounts shared by borrower and co-borrower can be used using the elder borrower’s age.
Reserves are not deducted from the assets when populating the calculator, but down payment or cash to close needed are deducted.

Maximum Debt To Income Ratio is capped at 40% DTI
75% LTV up to $1 million loan amount with reduced LTV’s up to $3 million
30 year amortization
No prepayment penalty
2/2/6 caps, 1-year CMT Index, 3.0% Margin, Floor= Note Rate
Escrows required

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.

Comments are closed.