Condotel mortgage

Condotel mortgage financing is available for investors. The property cash-flow may be used to qualify the loan instead of the individual investor themself. When the appraiser visits the property they identify the market value and they determine the market rent. If the rent amount is equal to or greater than the PITIA then you have an eligible transaction. Here are a few additional criteria when considering condotel financing:

Condotel Mortgage Guide

• 30%+ down payment
• 65% refinance
• No reserves required
• 100% investor concentration ok
• Resort, Air BnB and daily rentals acceptable
• No minimum square footage required
• bedroom required (studio efficiency on a case by case basis)
• full kitchen required
• Full doc, bank statement or DSCR
• 575 minimum FICO

Condotels are characterized by offering hotel-like ammenities and services including a front desk, housekeeping, and walk-in reservations. Because these properties are far more transient they are at greater risk of their HOA operating at a deficit and/or having units with delinquent dues. Many banks and mortgage lenders avoid lening on condotels. Our pool of lenders do carry greater this risk so expect to see an interest rate 2-3% above current residential rates. To read more about investor options, click here.

Big Island Mortgages by Doug Mallardi
(808) 333-4341 doug@bigislandmortgages.com
Start an online loan application, click here.
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Get A New Mortgage. Get A Better Mortgage. Home loans for all Hawaiian islands.

Items you’ll need for your new loan:

• List of real estate owned and estimated values
• Mortgage statement or deed for your primary residence
• Asset statements, ID and credit report authorization
• IDs and LLC documentation if closing in a LLC (all LLC owners must be on the loan individually)
• Sign an Investor Cashflow Disclosure
• Purchase agreement and appraisal authorization
• 20% down payment plus 6 months reserves for subject property

If refinancing:

• Mortgage statement or deed and appraisal authorization
• Property tax statement, homeowner’s insurance binder and HOA statement if applicable
• 12-24 month rental history
• Preferred title/escrow agent contact, HOA contact and insurance agent contact
• Sign an Investor Cashflow Disclosure

Items you don’t need:

• Federal tax returns
• Employment income
• Reserves on other real estate owned

Common out of pocket expenses:

• Credit report $89
• Appraisal $995
• Underwriting $1,795
• HOA docs request $350