A condotel is a condominium project that is operated as a hotel with a registration desk, cleaning service, and more. The units are typically individually owned. Unit owners also have the option to place their unit in the hotel’s rental program where it is rented out like any other hotel room to paying guests. Condotel owners can have their units rented out while not occupying to generate income. Condotels are often treated like second homes and are quickly growing in popularity among Florida vacationers looking for vacation and time-share real estate options.

Condotel Mortgage Financing Requirements:

• Up To 75% LTV for Investment Properties and Second Homes [ min 25% down ]
• Refinace Up to 70% LTV for refinances
• Loan amounts up to $5 Million
• Minimum FICO 600 for Purchase or Refinance
• 30-Year-Fixed Options available
• Purchase, Rate Term, and Cash-Out Refinance options are available
• The unit must have a kitchenette/kitchen
• Homeowners Association must not limit the days the unit can be accessed
• Homeowners Association must have an acceptable reserves account
• Homeowners Association must not have any structural litigation in the process
• Non-warrantable condominiums included
• $150,000 minimum loan amount

Condotel Alternate Income Options:

• 12 or 24 Months Personal Bank Statement Program [ use 100% if Deposits Came From A Business Account ]
• 12 or 24 Months Business Bank Statement Available [ After Expense Ratio ]
• 1099 Avg 2 years and year to date Income Statement [ After Expense Ratio ]
• Asset-Based Mortgage Lenders: Assets in your account to average for income.
• DSCR- Use the subject property income to quality using the previous rental income schedule 
• Accountant Signed P&L for income after deducting a 15% expense factor 
• Max 85% LTV [ 15% down payment ]
• Minimum FICO 600
• Second Home and Investment Properties OK
• DTI up to 50% with compensating factors
• 30-Year-Fixed Options available
• Purchase and Rate Term Refinance options available
• Non-warrantable condominiums included
• $200,000 minimum loan amount

Evaluated Condotel Approvals Case-by-Case:

• Low HOA budget reserves – HOA delinquencies exceeding 15%
• Condo Questionnaire must be 100% complete for Approval Commitment. No blanks or questions answered “n/a” or “unknown,” and the questionnaire must pass underwriter review.
• Condotels with less than 500 square feet are allowed at a max 70% LTV
• Condotels with kitchenettes are allowed on a case-by-case basis

Not allowed:

• Structural deficiencies and certain pending litigation
• Incomplete construction of the subject phase
• Homeowners Association with $0 reserves
• Homeowners Association limits the number of days the property can be accessed