Thursday, June 21, 2007

Florida Mortgage Loans | Condo-Hotel/Condotel Financing Explained

Condo Hotels or Condotels are a popular property type in Florida, especially in hot tourist areas like West Palm Beach, Fort Lauderdale, Orlando, Tampa and Miami. With access to beaches, golf and other tourist attractions, Condo Hotel properties are a great way to purchase a vacation home with the benefits of ownership and the conveniences and amenities of a hotel room.

Condo Hotels have recently become more accepted by lenders who are now offering loans with as little as 10% down. Residency in these units is typically taken as either a Second/Vacation Home or an Investment for loan purposes. Some Lenders allow limited Primary Residence loans on these properties.

Foreign Nationals are common investors into these units in Florida as they typically purchase in vacation/resort areas.

A favorite feature of Condo Hotels for their owners is the rental pool and built in management. While not in use, the hotel can rent the units out and maintain them with housekeeping services on a nightly, weekly or monthly rental. While the rents will not count towards mortgage qualifications, this is a perk of ownership that most people do not overlook.

Lenders often look for specific criteria to be met such as:

  • Minimum of 600 square feet
  • In proximity to vacation/resort area
  • Separate Kitchen Space, Bathroom and Living Area/Bedroom
  • Kitchen to be equipped for food preparation
  • Voluntary rental pools

Some Examples of some great South Florida Condo Hotels are:

The Brazilian Court in Palm Beach Florida just off world renown Worth Avenue shopping. This is a quaint historic building complete with the five-star hotel amenities you would expect to find on Palm Beach Island including an amazing spa and a gourmet restaurant owned by five-star Chef Daniel Boulud.

Trump Las Olas Beach Resort - a 12 story Condo Hotel Project with 95 residences in a boutique setting set in the exciting Las Olas area of downtown Fort Lauderdale Florida. Located on a barrier island, on Sea Breeze Blvd between the Atlantic Ocean and the Intracoastal Waterways.

Trump International Sonesta Beach Resort - Part of the Trump Grande project in Sunny Isles Beach, Florida, this project is a three phase project includes the condo hotel project designed by renowned Sieger Suarez Architectural Partnership.

Ocean Sands Resort and Spa - In Pompano Beach Florida, just South of Boca Raton, Florida. A great location with over 852 feet of beach frontage.

The Ritz-Carlton Golf Club & Spa - Located in Jupiter Florida, in the North part of Palm Beach County Florida, this property offers a members-only spa and a Jack Nicklaus Signature Golf Course. The floorplans offered are 2 & 4 bedroom Mediterranean Styled Club Homes.



More Florida Mortgage and Real Estate News You Can Use From
David A. Podgursky, MBA
The Mortgage Go To Guy
Your Source for Residential, Commercial, Investment and Relocation Mortgages in Florida

6 comments:

Ines said...

David - I had no clue that lenders looked at particulars of condo hotels, thanks so much for the heads up - this was really helpful information.

Cyndee Haydon said...

David - Appreciate you being such a knowledgable resource on how to finance a Condo Hotel.

David A. Podgursky, MBA - The Mortgage Go To Guy! said...

Ines - thanks for dropping in! Yes - lenders are specific on their condotel requirements because they originally were not built to standards... plus they are mostly investor owned. That increases risk.

Cyndee - thanks! This is a property type that requires a little extra effort. They're not "difficult" but they're specific. Even easy-going lenders are a little more strict on these properties.

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condomondo said...

David, I"m guessing though that since most places have their preferred lenders in place, that even hotel condo conversions should receive financing?

David A. Podgursky, MBA - The Mortgage Go To Guy! said...

Ines - thanks for the link and for stopping by... yes.. lenders have to be particular because the property must meet codes as a dwelling to be able to be financed.

Cyndee - thanks!!

Kely - thanks... and thanks for the links to some similar units in Costa Rica! International Financing to come!

CondoMondo - same rules as a Condo Conversion... there have to be certain pre-sales numbers etc depending on lender. Most Condotels currently ARE conversions. i.e. Ritz-Carlton in NYC & Miami didn't build from ground up, they converted some of their suites.