It seems like interest rates have been locked in for so long, we have all forgotten that they are historically low and not the norm. When you consider that the 1980s saw interest rates that were upwards of 20% or more, 7% might seem like a rip-off – but only because we have been living in a delusion of interest rate dreams. If you are considering investing in a condotel and wondering whether now is a good time, this is the best advice we can give those who are looking for a condotel mortgage in South Carolina.
What is a Condotel?
A condotel is just what the name sounds like: it is a combination of a hotel and condo. Condotels give you all the comfort of owning your own condo, with the extra amenities that you like about staying in a hotel versus using a private home for vacation. Condotels offer things like workout rooms, maid service, and front desk check-in staffing. As a condotel owner, you do have to pay for the additional services, but for some, it takes the hassle out of being a property owner or hiring a property management company.
What are the Downsides of Condotels?
One of the biggest downsides of a condotel, which is increasingly becoming a more significant downside, is that getting financing is not as easy as it would be if you were purchasing a home or even a more traditional vacation or second home. Condotels are seen as a risk because each unit is dependent on the care and operation of all of the other units.
If several condotel owners leave their units poorly maintained, it can reflect on the condotel building as a whole. Many banks are reluctant to give loans to those looking to buy in. Also, once a vacation destination becomes saturated or the condotel starts to depreciate, it can severely affect what the individual unit owners can charge, which changes the amount that they have incoming and can put condotel owners in a bad financial spot.
Why HomeSpring Mortgage is in Favor of Condotel Mortgages
At HomeSpring Mortgage, we recognize the many advantages that condotels offer both owners and vacationers. We’re one of the few condotel mortgage South Carolina companies that not only will grant loans for condotels – we actually encourage people to invest in them. Since traditional loans are guided by very specific rules and regulations, we offer the solutions people need to get around them and get the mortgage they want to start enjoying their vacation home today.
At HomeSpring Mortgage, we believe that where there is a will, there is a way. We offer many different solutions to get your clients qualified for nontraditional or non-QM loans. Contact us today and let’s get the process started so you can start to enjoy your home away from home!