REMN is pleased to announce that condotel properties will be eligible for our Non-QM Access product effect January 12, 2024.
Condotel Details
- Condominium units located in condotel or hotel-like projects must meet the Access Non-Warrantable Condo requirements
- Minimum 500 square feet with at least one separate bedroom and a fully functioning kitchen with stove/oven and refrigerator
- Must be in a resort/metropolitan area or associated with a national hotel chain
- No fractional ownership permitted (i.e., timeshare)
- Borrower must have exclusive use of the unit
- Commercial space limit may be increased to 50% (Parking not included in calculation)
- Occupancy restrictions or black-out dates not permitting year-round owner occupancy are not permitted
- Maximum allowable borrower concentration is 20% ownership of the condo project
Eligibility Requirements
- Maximum Loan Amount $1.5 million
- Minimum 700 FICO for investment property transactions (all doc types)
- Ineligible on Asset Qualifier Transactions
- Max LTV is the more restrictive of the non-warrantable condo requirements or the following
- Full Doc and Alt Doc (Bank Statement, P&L, 1099)
- Purchase and Rate/Term Refi: Max 75%
- Cash-Out: Max 70%
- Investor Cash Flow / DSCR
- Purchase and Rate/Term Refi: Max 75%
- Cash-Out: Max 65%
- Comparable properties must have 1 comp from within the same project and 1 comp from outside the project
Workflow Details
- The HOA must complete REMN’s Condotel Questionnaire in addition to the standard Condominium Questionnaire
- Condotel Project must be reviewed and approved by the investor pre-close
Guidelines have been updated and may be located at www.remnwholesale.com.
Please contact your Account Executive with any questions.