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Florida's luxury condo market attracts affluent buyers seeking high-end oceanfront condos and premium condotels that deliver exclusivity and income potential. Miami Beach features world-class oceanfront luxury high-rises and luxury condotels with hotel-style services for global investors. Naples presents elite Gulf-front luxury condominiums designed for sophisticated seasonal residents and upscale rentals.
Tampa Bay showcases striking waterfront luxury condo towers perfect for high-net-worth buyers combining city prestige with bayfront views. Our Florida luxury condo financing navigates condotel project approvals, premium HOA financial standards, and investor qualification requirements to power your acquisition of luxury waterfront properties and condotel investment portfolios.
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.
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 | 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.
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.
| City | Median Condo Price |
|---|---|
| Miami | $400,000 |
| Fort Lauderdale | $439,000 |
| Naples | $420,000 |
| Sarasota | $329,500 |
| Tampa | $330,000 |
| Orlando | $345,000 |
| Destin | $600,000 |
The median condo sales price data above is from either Zillow, Movoto, & Redfin. The median price can be heavily influenced by more sales at the upper price points.
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:
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.
Florida condotels and non-warrantable condos typically require a condo unit insurance policy (HO-6 policy) which covers the interior of the unit. Additionally, the building may have a master insurance policy covering common areas. For coastal properties, wind, storm and flood insurance are often required as well.
Yes, special assessments can be more frequent in Florida’s coastal properties due to wear and tear from hurricane season as well as any significant repairs or updates. For condotels, special assessments may cover major renovations to keep the property competitive in the Gulf Coast rental markets.
In many condotels, owners have the option to participate in a rental management program where the on-site management team rents out the unit on behalf of the owner and takes a percentage of the income. This setup allows owners to earn rental income while the management handles bookings, cleanings, and maintenance.
Owners can use non-warrantable condos as primary residences but condotels typically limit primary residency options due to hotel management and guest access. It’s best to verify with the condo association if you plan to live in the unit year-round.
Yes. Florida’s property taxes may be higher for condotels or non-warrantable condos used as income-generating properties. Additionally, owners might need to file and pay local lodging taxes if the unit is rented out short-term. Consult a local tax advisor for details on how ownership could affect your taxes.
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.