CONDO HOTEL REFINANCING

Maximizing Your Investment Opportunities through Allied First Bank

Condotel Loan Refinancing with Allied First Bank

In the ever-evolving landscape of real estate and hospitality, condotels have emerged as lucrative investments, especially when aligned with platforms like AirBnB and daily rental models. We offer an excellent refinancing option for condotel owners. Our program includes both cash-out and rate/term refinancing options up to 65% loan-to-value (LTV) ratio. You are also eligible to close the loan under your LLC if needed.

Understanding Condotel Refinancing with Allied First Bank

Condotel refinancing through Allied First Bank provides an option for property owners to restructure their existing hard money mortgage under potentially more favorable terms. This can involve adjusting the interest rate, loan term, or extracting equity through a cash-out refinance. What sets this program apart is its accommodation for properties utilized for resort AirBnB and daily rentals, along with refinancing properties originally purchased entirely in cash.

In fact, when you originally purchased your property, you may have been told that traditional financing isn’t available to you. However, with our refinance program that may no longer be true. We are able to finance smaller condotel units needing only 1 bedroom, a working kitchen (including full refrigerator and at least a 2-burner stove) and no minimum requirements for square footage. This opens the door for many condotel owners to take advantage of a refinance to access all the equity available.

Key Features of Allied First Bank’s Condotel Refinancing

  • Flexibility with Rental Models: Recognizing the growing popularity of platforms like AirBnB, Allied First Bank’s program is tailored to work with properties engaged in daily or short-term rentals in resort areas. This approach broadens the scope for property owners to capitalize on the lucrative short-term rental market.
  • 65% LTV for Rate/Term and Cash-Out Refinancing: The program offers up to a 65% LTV ratio for both rate/term and cash-out refinancing. This allows owners to access a substantial portion of their property’s equity, providing financial flexibility for various purposes.
  • Low Minimum Credit Score Requirements: Most lenders require a 660 or higher credit score but with our program you can have a credit score as low as 575. This is very rare in the condotel financing space.
  • Refinancing Cash Purchases: This program caters to owners who have purchased their condotels outright with cash. It offers them an opportunity to free up tied capital, an option particularly appealing for investors looking to diversify or reinvest.
  • No Minimum Square Footage Requirements: In a departure from traditional lending criteria, Allied First Bank’s program does not impose minimum square footage requirements, making it accessible for a wider range of condotel units.
  • Loan amounts up to $4 million: We are able to accommodate a wide range of clients with our ability to do large loan amounts.

Benefits of Condotel Refinancing with Allied First Bank

  • Capitalizing on Rental Income: With the acceptance of resort AirBnB and daily rental models, owners can maximize their rental income potential, which can be particularly attractive in high-demand tourist destinations.
  • Improved Loan Terms: The rate/term refinancing option can lead to lower interest rates or better loan terms, translating into reduced monthly payments or a shorter loan duration.
  • Access to Equity: Through cash-out refinancing, owners can convert a portion of their equity into liquid cash, which can be used for property improvements, further investments, or other significant expenditures.
  • Diversification of Investment Portfolio: Refinancing a property bought with cash can unlock capital for investment in other ventures, supporting a diversified and robust investment strategy.
  • No Size Limitations: The absence of square footage requirements opens the door for owners of smaller units to benefit from refinancing options, a segment often not available from other lenders.

Eligibility and Considerations

To qualify for this refinancing program, condotel owners should be aware of several key points:

  • Ownership and Equity: Applicants must own a condotel and have sufficient equity (at least 35% of the property’s value) to qualify for refinancing. Or be willing to bring the difference to closing.
  • Creditworthiness: A good credit score and stable income are essential for loan approval, as per Allied First Bank’s underwriting criteria. However, our minimum credit score requirements are much less than other lenders. Currently we are able to go as low as a 575 credit score.
  • Property Appraisal: The condotel will undergo an appraisal process to ascertain its current market value, which forms the basis for the LTV calculation. However, if you have a recent appraisal (within 6 months) from another lender, or one you ordered yourself, typically we can accept your existing appraisal. This saves you from the added cost and wait from ordering a new one.

Conclusion

Allied First Bank’s condotel refinancing program is a testament to our innovative approach in accommodating the needs of modern property investors. By offering refinancing on cash purchases, and removing square footage restrictions, we provide a flexible and inclusive solution. This program not only offers financial freedom to property owners who purchased in cash, but also aligns with the contemporary trends of the hospitality and real estate sectors. For condotel owners looking to optimize their investments, explore financial avenues, or adjust to more favorable loan terms, we have you covered. Give us a call or fill out our pre-qualification form today!

Request a Consultation with an Allied First Bank Loan Specialist

Allied First Bank of The Carolinas

  • Michael Parker
  • info@afbcarolinas.com
  • (800) 697-4371
  • MPO NMLS#: 457569
  • AFB NMLS#: 203463
  • 3804 Peachtree Ave.
  • Suite 200
  • Wilmington, NC 28403

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As a condotel lender, we specialize in offering financing for a wide range of condominiums, including condotels. Our services encompass condotel loans and loans for non-warrantable condo projects. If you're having difficulties finding condotel financing for the condo hotel you have your sights on, don't lose hope! Our goal is to assist you in acquiring the property you desire.

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