If you’re considering the benefits of owning a vacation home, you might be interested in a condotel. A condotel lets the owner experience the joys of a relaxing vacation while putting their property to work when they’re not using it. At MortgageDepot, we have access to lenders who specialize in this unique type of financing.
What is a Condotel?
A condotel is a condominium complex that operates as a hotel. It offers housekeeping services, grounds maintenance and a registration desk, just like your favorite vacation resort.
Condotel units are individually owned. They usually serve as vacation homes for out-of-town owners. When the owners aren’t occupying the unit, they can use the hotel’s rental service to rent the property like a hotel room and offset ownership costs.
Why Should I Consider a Condotel?
There are several benefits to condotel ownership. If you are thinking about adding a vacation home to your real estate portfolio, here are some of the reasons why a condotel might be a good option:
- You’ll likely receive consistent monthly cash flow from your rental.
- On-site staff will handle property maintenance, cleaning, marketing and administrative tasks.
- Condotels are usually located in vacation hotspots, providing a fun getaway for their owners and increasing rentability.
- Condotels typically cost less than a stand-alone vacation home in the same area.
- Loan programs are available to finance condotel purchases.
Financing a Condotel
Not all banks offer condotel financing programs. Condotel loans come with a level of risk that many lenders don’t want to assume. At MortgageDepot, we have access to a program designed especially for our clients who want to own a piece of paradise. Here are the highlights of our Condotel program:
- Borrowers must have a minimum credit score of 680.
- We consider loan-to-value ratios of up to 65%.
- Condotel loans are available for up to $1.5 million.
- The condotel must have at least 500 square feet of living area.
- Investment properties are eligible for the Condotel program.
- There are no in-state limitations for the Condotel program, meaning that your vacation getaway can be nearly anywhere!
Contact MortgageDepot Today!
Condotels are a great way to get your feet wet as a rental property owner while reaping the rewards of a vacation home. If you are interested in learning more about our Condotel program, give us a call. We’ll give you the specifics of our Condotel program and help you decide if it’s right for you!
Connect with one of our loan consultants to learn more.