A condotel is a condominium complex that operates very much like a hotel. They are considered fee simple real estate and can be bought and sold like other forms of real property.
Condotels are very popular with affluent people who frequently travel and or have multiple residences around the country and world. They are normally found in resort and luxury markets such as Aspen, Chicago, Miami, Fort Lauderdale, the Las Vegas Valley, New York City, Myrtle Beach, South Carolina, and Orlando, Florida.
In recent years, condotels have performed better than traditional condos or single family homes in the same resort market. This is why they have become so popular and why many people who are looking to buy these properties are in need of financing.
This is where I can help you. My company, Banc Home Loans offers great loan products for condtels and below I have included some of the guidelines to qualify.
These loans are mainly for prime type borrowers, 700 FICO, 6-34 months of reserves and we have a suite of 5 different jumbo options depending on the credit quality or property situation which would determine the available product(s).
For a building to qualify for condo-tel financing, typically less than 35% of building must be residential. However exceptions are granted on a case by case basis. Unique properties such as dome homes, avocado or hobby farms are allowed if 10 acres or less.
On delayed financing transactions (where a homeowner has done rehab work to the property and wants to sell again prior to 6 months of ownership) we are able to use the purchase price plus the value of repairs for new financing.
Choice Programs – More for the Non-Qualified Mortgage marketplace that would not fit into the select programs. We are expecting a 40 billion jumbo opportunity in 2017 under this program alone.
Rate and term refinances are available with no draw on HELOC’s in the last 12 months (this is big as it has changed recently with Fannie/Freddie). We also offer 1% cash back to borrowers.
We also allow down payments to come from a business and gift funds.
There are some exceptions the guidelines above. Please call me, Erik Sandstrom at 619-379-8999; or email me at Erik.Sandstrom@BancHomeLoans.com.