Condo Mortgages in Florida:
Non-Warrantable & Condo-Tel Loans

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What is a Non-Warrantable Condo Loan?

Non-warrantable condo loans are designed for buyers looking to purchase condos that do not meet the qualification standards set by Fannie Mae and Freddie Mac. A non-warrantable condo is typically in a building with factors like high investor concentration, pending litigation, or incomplete phases of development. These characteristics make non-warrantable condos ineligible for conventional financing.

Rancho Bernardo Homes

Features of Non-Warrantable Condo Loans:

  • Ideal for condo buildings with unique ownership or development profiles
  • Loan-to-value ratio (LTV) up to 80% in Florida
  • Additional income documentation options including bank statements for self-employed borrowers
  • Typically higher down payment requirements often starting at 25%
  • Financing available for condos in Florida’s top coastal and metropolitan areas
  • Higher interest rates compared to conventional loans

What is a Condo-tel Loan?

Condo-tel loans cater to condos that operate similar to or as part of a hotel or resort. These properties, known as condo-tels, are popular among investors looking to rent out units as short-term rentals. Since condo-tels often offer amenities similar to hotels and have shared rental management they don’t qualify for traditional mortgages making these unique loans an interesting alternative.

Features of Condo-tel Loans

  • Loans designed specifically for Florida condos with hotel-like amenities
  • Loan-to-value ratio (LTV) up to 75% in popular tourist areas
  • Supports short-term rental income. Popular in areas like Destin, Miami, and Naples
  • Suitable for investors interested in high-demand vacation rental properties
  • Down payment minimums begin at 25%
  • Income verification options include traditional and DSCR loans for investors
30A condotel unit

Typical characteristics of Non-warrantable Condo and a Condotel

Features Non-Warrantable Condotel
Percentage of Units Rented 51% or more 51% or more
Owners may own > 10% of units Yes Yes
Allows daily or weekly Rentals Not likely Yes
24-hour Front desk check-in No Yes
The building offers luxury resort amenities No Yes
Interest Rates1 you can expect approx. 2-3% higher than conventional approx. 2.5-3% higher than conventional

1.  The interest rate depends on your credit scores along with the 20-30% down payment. Credit scores below 680 may receive rates 3-3.5% above traditional loans.

Benefits of owning a Condotel

Condotels give the owner the ability to charge significantly higher rents than an average condo unit. The short-term rental income is especially appealing to investors.

- Resort-like amenities: Some condotel buildings offer 5-star luxuries only the elite hotels offer.
- Luxurious interiors: The interior furnishing are usually best in class.
- You may occupy it at your leisure or rent it: Live in it when you want and during travel make it available for daily or weekly income.

Which Specific Cities or Neighborhoods in Florida Benefit the Most?

Many self-employed professionals in Florida’s growing & thriving regions find these loans helpful for purchasing homes or refinancing. Some of the key areas include:

Common reasons your condo loan may be denied are:

  1. HOA management allows timeshare units in the same building.
  2. The HOA's cash reserves or insurance are not sufficient.
  3. There's incomplete construction in one or more units or structural damage to a building
  4. An unacceptable percentage of units are still owned by the developer
  5. Pending litigation pertaining to the HOA

Local Success Stories

Orlando Marketing Consultant Gets Approved
A digital marketing consultant in Orlando with fluctuating income wanted to buy a condo. Through a bank statement loan, their average deposits helped them qualify for a $400,000 mortgage, with minimal hassle in documentation.

Miami Restaurant Owner Buys Vacation Home
A Miami-based restaurant owner used a bank statement loan to secure financing for a second home in the Keys. By using business deposits, they were able to qualify for a $750,000 loan and turning their vacation dream into reality.

We have multiple no tax return lending options available subject to underwriting approval.
Additional loan choices include Asset Based Mortgages, Mortgage for Self-Employed 1099, and Short-term Bridge Loan.

Common condo borrower questions and answers


Disclosure: Minimum loan amount is $200,000 for residential loans. Loan programs are subject to change per lender at any time until the loan is approved and the rate is locked. Borrowers must be approved by underwriting. Not all applicants will qualify.