GEORGIA CONDOTEL MORTGAGE LENDERS
| Georgia Condotel Program Number | |
| Program Description | Georgia Condotel Lenders Program Overview |
| Eligible Product Georgia Condotels | 5/1 ARM
7/1 ARM 30 year fixed Caps: 2% each year and 5% lifetime (5/2/5 caps are permitted on loans that close prior to February 28, 2017) Margin: 3.99 Index: 1 YR Libor Floor: Initial note rate |
| Interest Only and Amortization Options Georgia Condotels: | 5/1 ARM: 7 Year Interest Only, 10 Year Interest Only or 30 Year Self-amortizations
7/1 ARM: 10 Year Interest Only, 30 Year Self-amortization 30 Year Fixed: 7 Year Interest Only, 10 Year Interest Only or 30 Year Self-amortizations (Interest Only products are for a 30-year term. After the Interest Only period the loan must amortize over the remaining term.) |
| Condotel eligibility Borrower Eligibility Georgia Condotels | Each Georgia Condotel borrower must be either a United States citizen, permanent resident alien with a “green card” (form I-151 or I-551), or lawful non-permanent resident alien who meets the requirements of section B2-2-02 of the Fannie Mae guidelines; provided that restrictions apply to certain non-citizen borrowers as set forth in Section 4 hereof. |
| Allowable Loan to Value (LTV), Maximum Loan Amounts
Note: GEORGIA CONDO PROJECT MUST BE CLEARED AS ELIGIBLE BY US MORTGAGE LENDERS FOR LOAN AMOUNTS EXCEEDING $1 MILLION (Prior to Close) |
Primary Residence Georgia Condotel loans:
Purchase and Rate & Term Georgia Condotel Refinance: 70% LTV to $850,000 65% LTV to $2,000,000 Cash-out Georgia Condotel Refinance: 70% LTV to $400,000 65% LTV to $850,000 55% LTV to $2,000,000 Maximum Georgia Condotel cash-out: $150,000 @ 70% LTV $250,000 @ 65% LTV $400,000 @ 60% LTV $850,000 @ 55% LTV $1,250,000@ 50% LTV Second Georgia Condotel Home: 70% LTV to $850,000 65% LTV to $2,000,000 Cash-Out Refinance: 70% LTV to $400,000 65% LTV to $850,000 55% LTV to $2,000,000 Maximum cash-out: $150,000 @ 70% LTV $250,000 @ 65% LTV $400,000 @ 60% LTV $850,000 @ 55% LTV $1,000,000 @ 50% LTV |
| Minimum Loan Amount Georgia Condotels | $135,000 at standard loan to value ratios, loan amounts of $100,000 to $134,999 are permitted with a 10% reduction to the maximum permissible loan to value ratio. |
| Minimum Georgia Condotels Credit Score | 680, primary wage earner, middle score |
| Maximum Debt to Income Ratio | 46% |
| Eligible Georgia Condotels Properties Types | Condotel units that meet the requirements set forth in Section 12 of these Underwriting Guidelines, including a requirement that Condotels must be customary in the area where the Subject Property is located. |
| Permissible Georgia Condotel Occupancy | Primary residences and second homes, no investment properties provided that the Subject Property may be rented during periods when Borrowers are not in residence. NO RENTAL INCOME FROM THE SUBJECT PROPERTY MAY BE USED TO QUALIFY, and Borrowers must meet the debt to income requirement based on their income excluding rent from the Subject Property. |
| Required Reserves | 4 months housing expense |
| Acceptable States | All 50 States
(territories not permitted) |
| Gifts | Allowed, 5% borrower own funds required |
| Income Documentation | 2 yrs. W-2, 30 days’ paystubs; self-employed 2yrs tax returns |
| Credit History | No Foreclosure, Bankruptcy, Deed in Lieu, Short Sale or Forbearance in the past 4 years |
| Mortgage History | 0x30x24 |
| Subordinate Financing | Not allowed |
| Appraisal Requirements | 1 Full Appraisal + CDA or ARR. Loan amounts over 1,000,000 require 2 appraisals + CDA or ARR |
| Escrows for Georgia Condotel | Required |
| AUS | Not applicable; manual underwrite |
| ACH draft required for mortgage payments | No |
WHAT IS A GEORGIA CONDOTEL?
Georgia condotel ‘s are condominium unit’s located within a Georgia hotel’s that provide the individual unit owner with all the perks and amenities that a normal Georgia hotel offers. When the individual condotel owner is not occupying the unit, it can be rented out by the staff on hand as as regular hotel unit to the hotels guests. This generates rental revenues for the Georgia condotel owner to offset the Condotel costs associated with owing a Georgia Condotel ownership.
GEORGIA CONDOTEL MORTGAGE PROGRAMS INCLUDE:
- LOAN SIZE: $100,000 to $3 Million
• LOAN TERMS: Amortized from 5 to 30 years
• LOAN TO VALUE: Up to 65%
• FOREIGN NATIONALS: Eligible
• CLOSING: 20-40 days
CONDOTEL EXPLAINED
Most have never heard of a condotel until they saw one for sale. However, there is a good chance you stayed at a Georgia condotel the last time your were on a Georgia beach vacation. A Georgia condotel to make it simple is described as a condominium unit that is located within a Georgia hotel or motel. A Condotel provides the individual unit owner with some of all of the perks and amenities that the condotel has to offer while the individual unit owner is not occupying the Condotel, it can be rented out to regular Georgia hotel guests providing rental revenue for the condotel owner to offset monthly ownership costs.
GEORGIA CONDOTEL MORTGAGE LENDERS ADVANTAGES
- Georgia Condotels offer a very unique investment opportunity as well as a great second Georgia home/vacation home destination for you and your family.
• Georgia Condotels are headache Free Investment opportunities. Most Georgia condotels are attached to hotel projects with a property management team that take care of everything from maintenance to renting your Georgia condotel unit.
• Very low monthly cost As, a result of the monthly rental revenue from you condotel unit investors can offset the monthly mortgage costs or may even provide positive cash flow.
• Georgia Vacation Destination- Your Georgia Condotel unit can be used as a great vacation getaway for you and your family.
• Georgia Investment Appreciation- Over the past five years, the huge increase in demand for Georgia condotel units have provided them enormous appreciation value. Most industry experts do not see a slowdown in demand for Georgia condotels’s anytime soon.
ARE ALL GEORGIA CONDOTELS THE SAME?
Georgia condo hotel units vary in size, amenities and operating rules are all different case by case. Some are two-bedroom suites with full kitchens while others are simple Georgia condotel rooms with a micro-fridge and microwave. Prices range from $100,000 to $3,000,000 per Georgia condotel unit.
