Purchasing a condo requires a clear understanding of the unique loan options designed for specific types of condo properties. Whether you're buying a high-rise unit, a non-warrantable condo, or a condotel, each type comes with distinct requirements and considerations. This guide explores the key details to help you make informed decisions.

High-Rise Condos

Towering Residences: Understanding High-Rise Condo Financing
High-rise condos are residential units in buildings with more than 16 floors, often located in urban centers. These properties offer unique advantages and challenges for buyers and lenders alike.

Advantages and Drawbacks

  • Advantages: Panoramic views, premium facilities, and prime locations
  • Drawbacks: Longer elevator wait times during peak hours and potential safety concerns in emergencies.

Notable High-Rise Developments

  • Four Seasons Residences, Chicago: 66-story tower priced from $2M–$10M with Lake Michigan views and upscale amenities.
  • Trump Tower, New York City: 58-story building in Midtown Manhattan with units starting at $3M offering views of Central Park and Hudson River.

Loan Options for High-Rise Condos

These loans often allow loan-to-value (LTV) ratios up to 90 but may involve additional conditions depending on the HOA's financials, questionnaire and building size.

San Diego High-Rise condominium

Prime Locations for High-Rises

  • San Francisco: South Beach neighborhood offers exceptional views.
  • South Florida: Fort Lauderdale Beach, Miami's South Beach and Brickell.
  • Dallas: The Harwood and Arts Districts feature stunning towers.
  • Los Angeles: Century City, Hollywood, and downtown Financial District
  • San Diego: Downtown areas like Bankers Hill and Little Italy

Luxury Condos

Opulent Living: Financing High-End Condo Properties

Luxury condos represent the pinnacle of upscale urban living offering premium locations, designs, and amenities. These properties cater to discerning buyers seeking comfort and sophistication.

Hallmarks of Luxury Condos

  • Prime locations in major cities and coastal areas
  • High-quality finishes and spacious floor plans
  • Custom designs and top-of-the-line appliances
  • Exclusive building amenities (private pools, spas, concierge services)

Investment Potential?

Luxury condos can be lucrative investments due to their potential for appreciation in desirable locations. The limited supply of high-end properties in prime areas often leads to steady value growth over time.

Notable Luxury Condos

  1. One57 in New York City: One of the tallest residential buildings in New York with units starting at $5 million and penthouses exceeding $50M.
  2. Ritz-Carlton Residences, Miami: Units priced between $3M–$15M featuring premium finishes and beachfront access.

Luxury Condo Hotspots

  • Miami Beach: South of Fifth neighborhood
  • Downtown Chicago: Magnificent Mile buildings with lake views
  • Beverly Hills, Los Angeles: Condos with private spas and concierge services.

Financing Options for Luxury Condos

Lenders may require additional documentation for luxury condo loans when verifying income with the following options:

  • 1-2 years of tax returns
  • 12-24 months of bank statements
  • 1099 statements for self-employed contractors
  • Profit & Loss statements
  • Liquid asset statements

Non-Warrantable Condos

What are Non-Warrantable Condos? They are condos that don’t meet the underwriting guidelines of Fannie Mae or Freddie Mac.

Characteristics of Non-Warrantable Condos:

  • – High percentage of rental units
  • – Mixed residential and commercial use up to 25-percent of building.
  • – Ongoing litigation involving the HOA

Financing a Non-Warrantable Condo

Securing financing often requires specialized lenders or non-conforming loans typically with minimum down payments of twenty-percent and stricter terms.

Locations with Non-Warrantable Condos

  • Watermark Tower, San Francisco: Mixed-use residential development with units priced $1.5M–$5M
  • Oceanfront Condos, Honolulu: Vacation rentals priced from $500K up to $3M
  • South Beach, Miami: along with Brickell have various categories of condos.

 

Condotels

What is a Condotel? A condotel combines condo ownership with hotel-like amenities. Owners can rent their units through hotel management programs. They offer both lifestyle and investment opportunities in nearby popular tourist destinations and require specialized financing.

Financing Condotels

Lenders often classify condotels as investment properties requiring higher down payments (25-30 percent) and higher interest rates than a regular/basic condo.

Tampa modern condo with views

Notable Condotel Developments

Marriott Vacation Club (Orlando, FL): Located near Disney World. Prices for these units range from $150,000 to $500,000 depending on the unit size and location.

W Fort Lauderdale (Fort Lauderdale, FL): Offers oceanfront views and modern amenities including room service and concierge. Condos here can cost anywhere from $400,000 to over $1 million depending on the floor and unit features.

Emerald Grande in Harborwalk Village in Destin, FL: This luxury condotel development is considered one of the most luxurious and full-service condos on the Emerald Coast with stunning views of the gulf and nearby. Prices range from $750,000 to $4 million depending on the size and location.

Where to Find Condotels

  • Fort Lauderdale, FL: Beachfront areas of Ft. Lauderdale.
  • Aspen, CO: Ski resort condos in Aspen, Vail, and Beaver Creek

General Condo Loan Requirements

Key Criteria

  • Credit Scores: Minimum of 660 for competitive rates
  • Down Payment: Typically 10–25% depending on lender and type of condo.
  • HOA Approval: Lenders require a completed HOA questionnaire

Income Verification Options

  • Tax Returns: 1-2 years of 1040s or if you're self-employed personal and business tax returns
  • Bank Statements 12–24 months for self-employed borrowers
  • Income Statements 1099s or P&L statements from a CPA
  • Liquid Assets Account statements for retirees or investors, or high-net worth individuals

 

Tips for Condo Loan Approval

  1. Loan-to-Value (LTV) Rati Most lenders have an LTV limit of 80% or lower for non-warrantable and condotel properties. Try for 80 LTV maximum (20% down)
  2. Condo Association Health: Make sure the HOA is financially stable with sufficient reserves
  3. Unit Occupancy: Owner-occupied condos often qualify for better financing terms.

Ready to Explore Your Condo Loan Options?

Getting a condo loan doesn’t have to be complicated. With the right guidance and a clear understanding of your options, you can secure the ideal loan for your dream property. Start your journey today!