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Condohotel / Non-Warrantable Condo Loans

Condohotel / Non-Warrantable Condos Loans


Description: A condo hotel, also known as a hotel-condo or a Condotel, is a building used as both a condominium and a hotel. Condo hotels are typically high-rise buildings developed and operated as luxury hotels, usually in major cities and resorts. These hotels have condominium units which allow someone to own a full-service vacation home. When they are not using this home, they can leverage the marketing and management done by the hotel chain to rent and manage the condo unit as it would any other hotel room

Features: This product is unique and requires solid preparation before purchasing. Call or email today to review your specific financial goals for your family and for this property. From that discussion we can all be set up for a successful transaction!

Non-Warrantable Condos

Description: Non warrantable is one that the condo project doesn’t meet Fannie/Freddie guidelines. There is a list of criteria and it depends on whether or not DU requires a Limited Review or a Full Review.

Features & Benefits

  • For a limited review at least 90% of the total units must be sold and closed.
  • For a Full Review a minimum 70% of the units in the project or subject legal phase must be sold to bona fide purchasers who have either closed or have executed purchase contracts.

A condominium project with features that lenders view as protections against hazards that would threaten the value of condo units. These features include the project being completed with most units sold rather than rented, no one party owning more than 10% of them, adequate insurance coverage of common structures, and an ownership association independent of the developer.

If you have a condo that could fall into this category, the key is to work with a loan officer that knows this product and is clear on how to get it closed. Many loan officers confuse this with a regular condo and by the time the Underwriter informs them otherwise, you are up against contract deadlines and have already paid for a home inspection and the wrong appraisal. To protect you, your family and your earnest money, definitely leverage People’s Mortgage loan officer knowledge and tools to get you answers before an offer is even made. Please don’t hesitate to call or email to go into more depth on down payment and other product features.