Lenders may require 400 to 600 square feet, depending on comparable properties. In general, no, but in reality, yes. Once you're below 500 square feet, you're likely to have problems. Some hotels have a fixed number of units reserved as condotels.
Most lenders avoid funding condotels. Gustan Cho Associates is one of the few lenders that offer financing for condominiums. Condotels and unsecured condominiums are portfolio loans. A 25% down payment is required for second homes in condoteles.
The Condotel unit requires at least one bedroom. The Condotel unit must have a fully functional kitchen. The condo complex cannot have any pending litigation.
Leave Reply