Naples Condotel/ Non-Warrantable condo financing

Core Mortgage Financial recently released a condotel/non-warrantable condo financing program.
Naples Condo financing sometimes can be difficult to approve due to tight condo lender restrictions. A majority of Naples condo mortgages follow Fannie Mae and Freddie Mac guidelines in order to be sold to these government-sponsored entities ( GSE"s). An example of a non-warrantable condo would be as follows:
The Naples condo development has weekly rentals with a employee at the reception area. This would immediately eliminate standard condo financing and require condo hotel (condotel) lenders. Most warrantable condo's would have a property manager and would require annual rental whereas condotel would allow nightly or short seasonal rentals.

The first step in figuring out if a condo is approved for traditional financing through the GSE's is to approach the HOA. We recommend getting a condo questionnaire (condoQ)  filled out by the homeowners association or property manager.  Below is a sample of questions you might see on a condo Q:

1. How many units are investors owned VS owner occupied of second home?

2. What percentage are delinquent on their home owners assocation dues?

3. Does more than one person own 10% of the total project units?

5. Has the developer turned over the project to the HOA?

4. Do you have budget reserves in place?

Above are the standard questions that usually get Naples condo's not approved if they fall short of the Fannie Mae/Freddie Mac guidelines. Give Core Mortgage Financial as call about the answers to these questions above. Naples condo mortgage experts will assist you in determining the viablity of your financing options.

Condotel/non-warrantable financing you will have a higher interest rate due to the lenders risk level. Standard down payment is 30% with current loan products only having adjustable rate mortgages. ( 3/1, 5/1, 7/1 Arms) Naples Condo mortgage lenders currently do not have traditional long terms 30 or 15 year fixed programs. Please call us as things do change daily in the Naples condo mortgage arena.

Thanks for your time and good luck on your quest to find the right condo for purchase.

Core Mortgage Financial

239-514-2673

Disclaimer:

Company NMLS #849597 / personal NMLS #344608. Rates, programs, guidelines are subject to change without notice. This is not a commitment to lender or approval as this blog is for informational puroses only. Each applicant situation is different, please call for a customized loan proposal.