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

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 800-900-8569 or text us for faster response.  Or email us at gcho@gustancho.com.

Here Are The Florida Condotel Purchase Loans

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

This BLOG On Condotel Financing In Florida And California Was UPDATED On August 25th, 2018

Condotel Financing In Florida and California is back. Condo hotel unit buyers and owners have been experiencing extreme difficulty in trying to obtain Condotel Financing in Florida and California as well as the rest of the nation for both purchase and refinance mortgages.

• Many owners currently have mortgages that range from 6% or higher
• This is because they got their mortgages prior to the real estate crash of 2008 when mortgage rates were much higher than it is today
• I have a client who I am currently working on her financing where her interest rate is at 8.75% and had an extremely difficult time searching lenders

Who Does Condotel Financing In Florida And California?

Most lenders do not want to finance condo-hotel units.

• Whether it is a purchase or refinance mortgage, the reason lenders do not want to finance condotel units and non-warrantable condominiums are because they need to hold it in-house and the portfolio the loan
• For unit owners needing to refinance their current loan, they should see if their current lender will refinance their current loan
• Most of the owners come back to me and tell me that their bank is not willing to refinance their existing mortgage loan
• Most owners have their condo hotel mortgages with big banks like Chase and Wells Fargo
• Banks like Chase WILL NOT refinance a condo-hotel unit  mortgage
• It does not matter whether the owner is a preferred client, or whether the LTV is below 50% and the condo unit is cash-flowing

Unfortunately, most owners are left stuck with their high mortgage interest rates after exhausting their efforts in finding a lender that will refinance their condo hotel unit.

Condotel Financing Guidelines

For those who need condotel financing, please contact us at Gustan Cho Associates at 262-878-1965 or text me on my cell for faster response at 800-900-8569. Borrowers can also email me at gcho@gustancho.com. The team at Gustan Cho Associates are specialists in condotel financing in Florida and California as well as the rest of the country.  Get pre-approved now for a condo-hotel unit loan by clicking here and completing the 4-page 1003 APPLY NOW FOR CONDOTEL FINANCING.  My staff and I are available 7 days a week to take borrowers’ calls and answer all of your questions 7 days a week, including evenings, weekends, and holidays.

Many sellers of condo-hotel units normally want cash buyers for their units since lenders are extremely rare.  I can help potential buyers get a purchase loan on their condo hotel condominiums.

Condo Hotel Financing Process

Here is the condo hotel mortgage application and underwriting process:

• The borrower needs to complete a condominium questionnaire provided and completed by the condo hotel homeowners association manager
• The condominium questionnaire is then reviewed by an underwriter to see whether the condo-hotel complex does not have any major pending litigation
• Condo Complex needs to be in compliance and if it does, the unit is approved and the mortgage process can continue
•  If the condotel qualifies, we then take borrowers preliminary application ( APPLY NOW ) and the loan gets processed and gets underwritten
• Part of the underwriting and approval process includes the file being reviewed by the credit committee
• In order for the file to go to the credit committee, the underwriter signed off on the loan and the credit committee will just need to review it
• Once the credit committee agrees with the underwriter’s recommendation, the loan file gets back to the underwriter and conditional approval is issued

The conditions need to be worked and once the borrower provides all the conditions, the file is reviewed by the mortgage processor and submitted for a clear to close.

Condotel Financing In Florida And California: Purchase Guidelines

On purchase loans here are the requirements:

• 25% down payment on first and second homes
• 40% down payment if buyers have more than 2 properties
• One year reserves of principal and interest for each property borrower owns
• Reserves do not have to be in the form of cash but needs to be liquid investments such as securities accounts, pension accounts, and other documented asset accounts
• Condotel mortgages and non-warrantable condominium loans are adjustable rate mortgages amortized over 30 years
• ARMS available are 3/1 ARM, 5/1 ARM, and 7/1 ARM

Florida Condotel Purchase Loans is one of my specialties.  Please contact us at Gustan Cho Associates at 800-900-8569or text us for a faster response. Or email us at gcho@gustancho.com. Condotel unit buyers can also email us at gcho@gustancho.com with any questions or can apply online at www.gustancho.com.