Condotel Financing

Difficulty In Condotel Financing?

A condotel condominium unit is a condominium unit within a hotel complex or a condominium project that has a rental desk or rental office in the lobby of the complex. Condotel units were extremely popular back in the 2000’s where many banks and mortgage companies were eager to finance condotel units. After the 2008 Real Estate and Mortgage Meltdown, condotel financing came to an abrupt halt. Almost all banks and condotel financing lenders stopped lending on condotel units. Condotel unit owners who owned condotels and wanted to sell their condotel units had the most difficult time in selling their units because the condotel buyers could not get financing. Condotel buyers were limited to cash buyers only due to lack of condotel financing. Many folks who wanted to purchase condotel units as second homes could not think of purchasing a condotel unit because they could not come up with cash funds. Due to the lack of available financing for condotels, condotel unit prices started tumbling nationwide. Many condotel unit owners could who purchased their condotel units in the mid 2000’s could not sell their condotel units and could not get them refinanced even with their current condotel mortgage lenders.  No matter how good of a banking relationship the condotel unit owner had with their condotel mortgage lenders, their mortgage lenders would not refinance their condotel loan that they were already servicing.

Condotel Financing Now Available

Condotel unit owners are now in luck. Condotel Financing is back. Condotel Financing are 30 year portfolio adjustable rate mortgage loans. 3/1 ARM, 5/1 ARM, and 7/1 ARM mortgage loan programs are now available. The index is based on the one year treasuries ( Cost Maturity Treasury CMT ) and the margin is set at 3.0%. The condotel complex needs to qualify as well as the condotel mortgage loan applicant.

Condotel Unit Requirements

For a condotel unit to qualify for condotel financing, the condotel unit needs to be at least 500 square feet, have at least one bedroom, and have a full kitchen. The condotel complex needs sufficient reserves and the condo complex cannot have any major litigation going on or have any major building violation issues. Not more than 10% of the condotel units can be in foreclosure.

Condotel Financing Requirements

To qualify for condotel financing, the condotel mortgage loan applicant needs at least a 680 FICO credit score, have one year reserves for the borrowers primary residence as well as the proposed condotel principal, interest, taxes, and insurance, cannot exceed 40% debt to income ratios, and require a 25% down payment. The 25% down payment on a condotel purchase loan is for first and second home condotel units only. For condotel unit buyers who have two properties and the proposed condotel purchase is the third property they are purchasing, then the condotel purchase is considered a investment condotel purchase and a 40% down payment is required. If you have any questions about Condotel Financing, contact Gustan Cho at Gustan Cho Associates at 262-716-8151 or email Gustan Cho Associates . Gustan Cho and his associates are available 7 days a week, evenings, as well as holidays to answer all of your questions.

2 To 4 Unit Properties

Purchasing 2 To 4 Unit Properties

First time home buyers or home buyers who eventually want to become real estate investors can now purchase 2 to 4 unit properties as an owner occupied residence with a FHA Loan with 3.5% down payment. 2 to 4 unit properties can be great investments for home buyers intending on occupying one of the units and renting the other units to offset the monthly housing expenses. FHA does require that mortgage loan borrowers of 2 to 4 unit properties occupy one of the units for at least one year. After occupying one of the units for at least one year, the 2 to 4 unit property owner can then qualify for another owner occupied home and rent out the unit they are exiting.

FHA Loans And 2 To 4 Unit Properties

To qualify for 2 to 4 unit properties with a FHA Loan, the mortgage loan borrower needs at least a 580 FICO credit score. There is a 3.5% down payment requirement for mortgage loan borrowers with at least a 580 FICO credit score. Borrowers with credit scores under 580 FICO credit scores, a 10% down payment is required. Mortgage rates on 2 to 4 unit properties are higher than mortgage rates of single family homes because mortgage lenders view multi unit buildings as higher risk. With higher risk means higher mortgage rates. To get the best mortgage rates on 2 to 4 unit properties, one should have credit scores of at least 640 FICO. Mortgage lenders will require three months of reserves for three and four unit properties. Reserves are one month of principal, interest, taxes, and insurance or PITI. Many mortgage lenders require two years landlord experience from the mortgage loan borrower to be able to count potential rental income as part of their mortgage lender overlay. If a mortgage lender requests two years landlord experience in order for them to count potential rental income, the seek another mortgage lender where they have no mortgage lender overlays .

Using Potential Rental Income To Qualify

FHA allows up to 85% of the potential market rent income to qualify for the mortgage loan borrower’s income calculations. However, many FHA mortgage lenders have mortgage lender overlays where if the mortgage loan borrower does not have two years landlord experience, then the potential rental income cannot be used to qualify. If you are told that you do not qualify due to mortgage lender overlays because you do not have two years landlord experience, contact Gustan Cho Associates at 262-716-8151 or email Gustan Cho at GustanCho@Outlook.com.

Can I Qualify For 2 To 4 Unit Properties With Conventional Loans?

You can qualify for 2 to 4 unit properties with conventional loans, however, owner occupied 2 to 4 unit properties require 15% down payment with conventional loans. You can also use potential rental income but the potential rental income you can use is 75% of the potential market rent that is stated on the home appraisal.

Hard Money Capital Group

Welcome To Hard Money Capital Group

Hard Money Capital Group is a hard money and private money lender that caters to real estate investors, real estate developers, and property flippers who need fast temporary financing. Hard Money Capital Group, www.hardmoneycapitalgroup.com , has no loan minimum and can fund loans as little as $20,000 and close it in as fast as one week. Most hard money lenders want a minimum of a $100,000 loan minimum and most hard money lenders may take as long as 30 to 90 days to process a hard money loan. Hard Money Capital Group‘s management staff consist of professional real estate investors, mortgage loan professionals, and real estate professionals so they understand the importance of fast financing and understand that many real estate investors went through bad credit due to the 2008 Real Estate and Mortgage Meltdown.

Does Hard Money Capital Group Have Credit Score Requirements?

Hard Money Capital Group does not have any credit score requirements. Hard Money Capital Group is an asset based mortgage lender and want the hard money borrower to have skin in the game. Minimum equity and/or down payment requirements to qualify for a hard money loan with Hard Money Capital Group is 35%. 100% financing is available if the hard money borrower can cross collateralize other properties. Hard money borrowers with bad credit or lower credit scores can qualify for hard money loans with Hard Money Capital Group. While the hard money loan borrower utilizes the hard money loan, Hard Money Capital Group can help the hard money loan borrower fix and improve their credit through its sister company, Credit Fix Advisors , and help them with an exit strategy with a traditional mortgage lender, Gustan Cho Associates . Gustan Cho Associates are commercial and residential mortgage professionals whose specialty are no mortgage lender overlays . Gustan Cho Associates are creative mortgage lenders, portfolio lenders, and have access to specialty mortgage lending programs such as Doctors Funding Group . Doctors Funding Group offers unsecured financing to doctors, dentists, veterinarians, chiropractors, pharmacists, nurses, and other licensed members of the healthcare community for as much as $500,000. Hard Money Capital Group is different than any other hard money lender because every hard money client is a lifelong borrower and they offer full service not just funding the hard money loan, but also assisting the hard money loan borrower with credit repair, and helping them with an exit strategy.

Fix Rehab Flip Loans

Fix Rehab Flip Loans are one of the most popular hard money loan programs. Most traditional mortgage lenders do not want to originate and fund loans under $100,000. However, we at HMCG can fund hard money loans as small as $20,000, the hard money loan borrower can rehab the property and flip it at a handsome profit. For hard money borrowers who want to keep the investment property and keep it as a rental after the rehab, they can get a hard money loan with HMCG , fix the property and get end financing with Gustan Cho Associates. During the time of the rehab, HMCG will help the hard money loan borrower maximize their credit scores and do credit repair so they can get the best mortgage rates and terms on their end financing.

If you are interested in a private money or hard money loan that can close in a week, please contact HMCG at 800-900-8569. One Solution Real Estate, www.onesolutionrealestate.com, full endorses Hard Money Capital Group.

 

Welcome To One Solution Real Estate

One Solution Real Estate

One Solution Real Estate is a mega website about real estate, investing, mortgage lending, creative financing, residential loans, hard money lending, credit and credit solutions, and specialty mortgage loan programs. One Solution Real Estate mission to provide information and resources to real estate agents, mortgage loan originators, mortgage lenders, real estate investors, attorneys, title agents, insurance agents, home buyers, home sellers, and consumers through its sister and affiliate websites as well as its daily blog articles by real estate and finance professionals. Guest writers will include professional realtors, licensed veteran mortgage loan officers ( both residential and commercial ), real estate attorneys, veteran title officers, contractors ( on do it yourself construction projects ), real estate investors, and other members of the real estate community.

Comments And Feedback

Viewers of One Solution Real Estate should feel free to comment on every blog. Participation and comments by our viewers are appreciated. Not just asking questions but also if you feel that a topic will benefit our readers, it will be greatly appreciated if you would share it. The real estate market has gone through many changes in recent years, especially after the 2008 Real Estate and Mortgage Meltdown. Millions of real estate investors have lost millions. Many with high net worth lost everything from the real estate market crash. Besides losing everything they have worked so hard for, many had ruined their credit because the Great Recession forced them into bankruptcy and foreclosure. Millions of real estate investors have lost not just their investment properties but also lost their homes they have raised their families in and had to go back to renting. Many with solid jobs and careers had to settle for minimum wage jobs or jobs that they were overqualified for just to make ends meet. Some who had tens of thousands of debts and could not afford the funds to file for bankruptcy and had to endure the hard core calls by bill collectors year after year. Never in history of the United States and the World has the economy been so bad and so many families been affected. Prior to the 2008 Real Estate and Mortgage Meltdown, bankruptcy was hardly a common word. After the 2008 Real Estate and Mortgage Meltdown, the term bankruptcy was a household term. Bankruptcy attorneys had so much business that some bankruptcy attorneys had to turn away bankruptcy clients because they were so busy. Many real estate attorneys changed fields and became bankruptcy attorneys and their business were booming. All viewers should join our real estate and mortgage forum which is part of Gustan Cho Associates . Our goal is to develop a large online community consisting of real estate industry professionals and consumers where we can all participate on a daily basis and help consumers who have all types of questions about real estate. Real estate investment opportunities is back and will continue to grow. One Solution Real Estate will be the number one premier real estate information and go to website for real estate investors to go to for resources, especially specialty financing program.

Real Estate Market Is Recovering

The real estate market has recovered and is continuing to recover. Some areas of the United States like California and Florida has doubled in value. Homeowners who had their mortgage loan balances higher than the value of their homes are now seeing their home values recovered and can now sell their homes. Hundreds of thousands of real estate agents and mortgage loan originators who left the business due to the 2008 Real Estate and Mortgage Meltdown have come back to the real estate and mortgage industry and are doing better than ever. Real estate investors and real estate developers who have gone out of business are now back in business and are doing better than ever. The mission and goal of www.onesolutionrealestate.com is to offer as many resources as possible for real estate investors, real estate developers, real estate agents, mortgage loan officers, mortgage lenders, and consumers access and resources to further their real estate business and careers. One Solution Real Estate will be consistently be updating specialty mortgage loan programs, changes in lending guidelines, hard money lenders, top producing real estate agents, and mortgage loan officers that offer unique and creative financing programs.

Credit And Lending

Credit and income are the two most important factors in obtaining a mortgage loan. Whether you are looking for a residential loan, commercial loan, business loan, hard money loan, or specialty loan, credit is one of the most important factor in not just obtaining a loan but credit also determines your mortgage rates and terms of the loan. Through our sister credit information site, Credit Fix Advisors , credit repair tips will be offered as well as reasonable credit repair services.  Lenders do understand that many have had prior bad credit due to the Great Recession but as long as the borrower has re-established credit, lenders will gladly approve financing. Prior bad credit does not affect mortgage rates or interest rates. Credit scores is the factor that determines what your mortgage rates and/or interest rates will be.