Purchasing a Condotel
Condotels are individual units owned by private individuals or a business, but managed and operating similar to a hotel. Condotels are abundant around the thousands of miles of beaches, ski resorts, and other vacation destinations throughout the country. Condotels are much sought-after by real estate investors with in-season rates creating a lot of excitement in many of these resort areas. A Condotel is not an eligible property for traditional loan products like Fannie Mae, Freddie Mac, FHA, and VA, but we are proud to offer DSCR loans for Condotel financing needs.
- The Condotel unit must be 500 Square Feet minimum, with a full kitchen, bathroom, and at least one separate bedroom
- Standard DSCR to 80% LTV with the exception of Florida properties which has a maximum 75% LTV
Minimum loan size $75K
- Minimum DSCR of 1.00 for all loan sizes under $125K – Minimum DSCR of 0.75 for loan sizes over $125K
- 5% reduction in maximum LTV for loan sizes of $75K-$125K
- First-time investors are eligible
- Seasonal rents may vary and are often expected, but the property must have year-round availability
- The property cannot be located in a resort area that closes during the off-season and prohibits year-round usage
