Condotel Financing Mortgages
This BLOG On Condotel Mortgages Was UPDATED On June 23, 2017
What’s New About Condotel Mortgages?
Gustan Cho Associates are experts in Condotel Mortgages and Non-Warrantable Condominium Financing.
- We can help Buyers who are interested in Condo-Hotel units or Condotels
- Condotel Unit owners can also refinance their condo hotel units
In this article, we will discuss and cover Condotel Mortgages: Financing For Condo Hotel Units.
Condotel Mortgages And Application Process
The Condotel Application Process is a two-step mortgage process:
- The first stage of the application process is that the condotel unit buyer needs to be qualified
- The second stage is that the condotel unit and condo-hotel complex needs to be approved
Condotel Mortgages: Condo Hotel Complex
- Condotel Lenders want to make sure that the Condo Hotel Complex is in good structural condition and financial condition
- Condominium Questionnaire needs to be completed by the Condo Hotel Complex HOA Manager
- Condotel Lender is portfolio lenders and wants to make sure that the Condo Hotel Complex does not have major pending litigation and has sufficient reserves
- Condotel Unit Mortgage Applicants can apply online on this website by clicking APPLY NOW
Condotel Pre-Approval Process is similar to residential mortgages like FHA and Conventional Loans.
Condotel Financing Requirements
There is no cap on investor concentrations with Condotel Financing mortgage loans at all.
- Minimum credit scores borrowers need to have is 680 FICO
- One year reserves for the main residence and proposed Condotel purchase P.I.T.I.
- The loan to value with a Condo Hotel purchase mortgage loan is a 75% loan to value on primary and second home condotel mortgages
- 60% Loan To Value on Condotel Mortgages if the borrower already owns two or more properties
- A single entity may own more the 10% of the condotel units in a project
- The loan to value with a condotel refinancing is 75% for rate and term
Condo Hotel unit owners need cash-out refinance mortgages on a free and clear unit, the maximum loan to value on a cash-out refinance is that is 50% loan to value.
Minimum Credit Scores on Condotel Financing
There is a minimum credit score requirement.
- The minimum credit score to qualify for Condotel Financing is 680 FICO
- If your credit scores fall below that, I can help you boost your credit scores or repair your credit so we can get you to the 680 credit score requirement
- We offer 3/1 ARM, 5/1 ARM, and 7/1 ARM Condo Hotel Mortgage Loan Programs, amortized over 30 years
- There is no maximum loan size on Condotel Financing Mortgage Loans
Condo Hotel Mortgage Application Is 2 Step Process
Our Condotel Application process is fairly simple.
- There is a two-step Condo Hotel Application process with us
- First, we make sure that the Condo Hotel is healthy
- By healthy, our investors want to know that there are no structural issues with the Condo Hotel and that there is no pending litigation
- Our investors also want to make sure that the Condo Hotel is financially strong and not on the verge of bankruptcy
- This is accomplished by the Condo Hotel Homeowner Association manager completing a one page Condo Hotel Mortgage Application Questionnaire
- Once the Condotel buyer gets me the one-page questionnaire, the loan officer submits it to underwriting
- The underwriter will do some preliminary research on the Condo Hotel, its management, demographics, history, and check if there are any major pending litigation against the Condo Hotel
- Normally we do not have any problems
The underwriter normally gets back with an approval within 24 hours of getting the Condo Hotel questionnaire.
Condotel Hotel Mortgage Borrowers
Once we get the Condo Hotel questionnaire approval, the Condotel buyer needs to apply for a formal Condo Hotel Mortgage Application via this website.
- Just go to www.gustancho.com and click on the Apply Now icon, which is next to Fast Quotes on the top left section of the website
- This is a secured application platform and fills out the application
- Please be as detailed and accurate as possible
- Once you submitted your Condo Application, the loan officer will get an alert and contact you so we make sure everything is filled out correctly
- I then submit it to our underwriting department and within 48 hours of submitting the Condo Hotel Mortgage Application, we get approval
- Normally I know whether the loan will be approved before I submit it
- The credit committee signs off on it and we start underwriting the loan
- We can normally close a Condotel mortgage loan in 21 days from the time I get the signed application from the borrower
- Very simple process
