Understand the operating structure
Collect the rental-management agreement, occupancy restrictions, hotel services, association documents and expense information. The appraiser and underwriter need to understand how the property operates, not only how it is marketed.
Rental projections should be reviewed alongside operating costs and the owner’s access rights. A strong gross revenue estimate does not remove project eligibility restrictions.
Use the correct property cap
The standard DSCR matrix allows condo hotels up to 75% purchase LTV and 65% refinance LTV, with a maximum $1.5 million loan. A lower credit, balance or DSCR limit still applies.
Prime Time lists condo hotels up to 85% LTV and $2.5 million, subject to the selected income and occupancy matrix. Foreign National DSCR has a 70% purchase and 65% refinance condo-hotel property cap. These programs are separate; their best features cannot be combined.
Rental-income review is program specific
Standard DSCR short-term-rental documentation uses a 12-month average and at least a 20% extraordinary expense adjustment, or the higher actual expense factor. Management fees and multiple income sources require careful review.
The foreign national STR provisions exclude condo-hotel projects from that STR treatment. Obtain a program-specific income determination before using a condo-hotel revenue projection to size the loan.
Prepare for project and unit underwriting
An early project review can clarify both financing options and the size of the required down payment.
- Project questionnaire, insurance, budget and governing documents.
- Management and rental agreements, including owner-use restrictions.
- Twelve-month rental records when available, fees and operating expenses.
- Purchase contract, unit details and the borrower’s selected income documentation.
Questions about condotel & condo-hotel financing
Can I combine the Prime Time LTV with DSCR income rules?
No. Each program has its own income, property and leverage requirements.
Is a condotel always eligible because it earns rent?
No. The project, unit and program-specific income treatment must all be acceptable.
Related financing and resources
Financing depends on the property, occupancy, documentation, credit and applicable program guidelines. Final terms and availability require underwriting review. This information is educational and is not a commitment to lend.
