CONDOTEL  PROGRAMS

 GENERAL PROGRAM FEATURES & PROGRAM GUIDELINES

• Allows Purchases & Rate Term Refinances of Primary, Second Homes and Investment properties.
• Terms available are 15, 20 and 30YR fixed rates only.
• Non-permanent resident aliens and non-occupant co-borrowers not allowed.
• Gifts are not allowed.
• No mortgage late payments on mortgage allowed in the last 24 months.
• Maximum seller contribution is 6%
• 6 months cash reserves required ( 2 mos. If LTV if < 75% )   
• Minimum borrower’s FICO score of 620.

PROPERTY & CONDO REQUIREMENTS & RESTRICTIONS:

• Project must be completed and in operation for at least 2 yrs and have a minimum of 20 units.
• Project must carry a minimum if $1,000,000 liability insurance policy.
• All units in the project must be separately metered utilities.
• Property must be fee simple or leasehold property
• Construction may be specific to residential use; however, 15% of the project may be devoted to commercial purposes.
• The condotel must not have mandatory rental requirements.
• Rental income from the condotel may not be used in calculating DTI.
• Condotels must be common for the area.
• 1031 Tax exchange is allowed.
• 75% of the units must be sold and closed or under contract for sale.
• The condotel unit must have a minimum of 600 square feet.
• Unit owners must have been in control for more than one year.
• Existing projects must be classified as FNMA Type A or FHLMC Class III
• Recently complete projects FNMA Type B or FHLMC Class II
• New construction / conversion projects FNMA Type C or FHLMC Class
• A fully complete and executed condo questionnaire is required on all condotel projects.

MAXIMUM LTV’S AND LOAN AMOUNTS

PROGRAM CW FULL DOCUMENTATION LOANS – MINIMUM SCORE 620

Max LTV 80% / Maximum Loan Amount $350,000

Max LTV 75% / Maximum Loan Amount $650,000