What is a Condotel?

Condotels are condominiums that have been converted into resort or hotel-style living. Owners can have their units rented out while not occupying in order to generate supplemental income.

Condotel properties are often treated like second homes and are quickly growing in popularity among Florida vacationers looking for time share real estate.

Condotel Mortgage Financing Requirements:

• Max 75% LTV for Second Home [ minimum 25% down payment ] 
• Max 70% LTV for Investment Property [ minimum 30% down payment ] 
• Second Home and Investment Properties allowed
• Loan amounts up to $6 Million
• Minimum FICO 680
• ARM and 30 Year-Fixed Options available
• Purchase, Rate Term and Cash-Out Refinance options available
• Unit must have a kitchenette/kitchen with a full stove
• Homeowners Association must not limit the days the unit can be accessed
• Non-warrantable condominiums included
• $200,000 minimum loan amount

Condotel Bank Statement Income Option:

• 12 or 24 Months Personal Bank Statement Available [ use 100% of Deposits ]
• 12 or 24 Months Business Bank Statement Available [ Monthly net income from the P&L OR income after deducting a 15% expense factor (or one that is reasonable for the line of work) from the total usable deposits ]
• Max LTV 65% [ 35% down payment ]
• Minimum FICO 660
• Second Home and Investment Properties allowed
• DTI up to 50% with compensating factors
• ARM and 30 Year-Fixed Options available
• Purchase and Rate Term Refinance options available
• Non-warrantable condominiums included
• $200,000 minimum loan amount

Not allowed:

• Structural deficiencies and certain pending litigation
• Incomplete construction of the subject phase
• Units without a stove top and oven – must have both
• Homeowners Association with $0 reserves
• HOA that limits the number days the unit can be accessed

Approved/Evaluated 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 questionnaire must pass underwriter review.
• Condotels with less than 500 square feet allowed at a max 70% LTV
• Condotels with kitchenettes [ including full stove top and oven ] allowed on a case-by-case basis

A Condo unit as a Condotel when units in the complex can be reserved for daily, weekly or short-term rentals.