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CONDOTEL FINANCING
What type of mortgage options do I have to finance an condotel unit? What type of non-QM loans are available for condo hotel financing. Can I do a bank statement loan on a condotel in the Florida Keys?
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1 Reply
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Financing a condotel (condo hotel) unit can be more difficult than financing a traditional or single-family home. However, there are options available. Particularly through non-QM loans. Here’s what you need to know about your choices:
Mortgage options for condotel financing
Non-QM loans
Bank statement loans: If you’re self-employed and can’t qualify using traditional income documentation, these are for you. Lenders will evaluate your income based on deposits made into your bank accounts over 12-24 months. Bank statement loans can be used for condotel units in the Florida Keys.
Asset depletion loans: Some lenders may calculate your income based on the value of your available liquid assets rather than using traditional income documentation.
DSCR loans (Debt Service Coverage Ratio): Aimed at investment properties, these mortgages consider the cash flow of the property rather than the borrower’s income. As such, they’re ideal for units within a condotel that generate rental income.
Portfolio loans
Unlike other mortgage types, portfolio loans aren’t sold on the secondary market. Instead, they’re held by the lender — who has more flexibility. Unique properties like condotels (which might not qualify under traditional loan programs) often rely on this type of loan.
Interest-only loans
For an interest-only mortgage, you’ll pay interest for an initial period before starting to pay down the principal. Some non-QM lenders offer interest-only condotel products.
Jumbo loans
You might need a jumbo loan if the condotel is considered a high-value property. These are offered by non-QM lenders with more flexible standards regarding condotel financing.
Bank statement loans for Florida Keys’ condotels?
Yes, bank statement mortgages can finance a Florida Keys-based condo-tel purchase. Even traditional lenders do not offer funding options, given their unique nature. Still, there are always non-QM lenders who tend to be more accommodating regarding these types of loans.
What should I do next?
Contact a non-QM lender: Talk with one of these lenders specializing in non-QM loans about your condotel financing needs.
Prepare documentation: If you’re going for a bank statement loan, get 12-24 months’ worth of statements together to prove your income.
Consider investment potential: If the condotel will generate rental income, a DSCR loan might also be good. This is because it considers how much money can be made from renting out property like yours.
These choices offer flexibility for financing a condotel unit. This is especially true in hotspots like the Florida Keys.
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