The world of real estate evolves constantly, with innovative property concepts emerging to meet the ever-changing needs of consumers. One such concept is the condotel, a hybrid between a condominium and a hotel. As this unique form of real estate gains popularity, mortgage brokers can tap into an underserved market by offering condotel loans.
Understanding Condotels
A condotel, short for condominium hotel, is a property that’s divided into individually owned units but operates as a hotel. Condotels combine the benefits of vacation homes and investment properties. Owners have the option to use their unit for personal stays while also generating income by renting it out to hotel guests. For unit owners looking for financing, traditional mortgage options fall short.
Condotels have unique financing requirements that distinguish them from traditional residential properties. Unlike standard homes, condotels are part of a larger business operation (the hotel), and that can complicate the underwriting process. Loan officers who understand this can guide clients through the necessary financial documentation and help them secure the right loan.
An Overlooked Market
As more individuals seek vacation properties that offer both personal enjoyment and investment opportunities, the demand for condotels is on the rise. At the same time, financing options are limited – and so are the number of loan officers serving this market. By offering condotel loans, you can position yourself at the forefront of a burgeoning market and establish your expertise in a specialized field.
Broadening your range of services is a smart business move. By adding condotel loans to your portfolio, you diversify your offerings and attract a broader client base. This diversification acts as a buffer during market fluctuations and uncertain times.
What’s more, guiding clients through the intricacies of condotel financing fosters trust and builds stronger relationships. By offering tailored solutions for your clients’ unique needs, you become an indispensable partner in your clients’ real estate ventures. This client-centric approach can lead to repeat business and generate referrals.
How To Qualify For Condotel Financing?
Now you can offer borrowers financing for their condotels – all with the program options and service levels that you’ve come to expect from LendSure. Some underwriting guidelines of our condotel program:
- Up to 75% LTV for Purchase Loans
- Up to 70% LTV for R&T Refinances (740 minimum FICO)
- Up to 65% LTV for Cash-Out Refinances (740 minimum FICO)
- Investment Property and Second Home Only
Our knowledgeable Account Executives are experts in condotel and non-warrantable condo loans and can help you find solutions for your borrowers so you can close more deals each month.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers and ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.
Are you ready to grow your business? Conforming loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, tools, support, and guidance they need in order to say “yes” to more of their clients. This ensures happy borrowers and opportunities for bottom-line growth. What are you waiting for? Let’s get started!
Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.
