The Quick Read: The down payment on a condotel is set by the property type first and the loan size second, with your bank deposits deciding only whether you qualify at all. Through select wholesale programs, subject to full underwriting, a condotel purchase typically tops out at 75% LTV, so plan on at least 25% down, and more as the balance climbs.
- Property type sets the ceiling: condotels run 75% on a purchase and 65% on a cash-out through the portfolio program, and 50% on cash-out through the bank program.
- Loan size then steps leverage down further, and every loan above $4,000,000 is reviewed case by case before submission.
- Bank statement income is a documentation method. It does not raise the condotel’s leverage cap.
- Down payment, closing costs and reserves are three separate pools of cash.
- Occupancy matters: second homes and investment property sit about five points below primary residence at each size.
Buyers who write off heavily often show little on a tax return and a lot in their accounts. A bank statement loan reads the accounts. A condotel adds a second review, because the building gets underwritten as well as the borrower. This guide walks through how those two reviews combine and what cash you bring to the table.
What Is a Condotel, and Why Does It Change the Math?
A condotel is a condominium project run like a hotel. Investopedia’s definition describes individually owned units, a front desk and cleaning service, and a rental program the owner can join. They are typically sold as second homes.
That hotel-style operation is why large retail lenders and the agencies avoid the property type. Condotels mostly land with portfolio and non-QM lenders, which write their own rules. Lendmire is a broker that shops several wholesale programs for this property type, and the leverage cap is where the building shows up in your numbers. A warrantable condo can reach 85% and a non-warrantable condo 80%. A condotel stops at 75% on a purchase.
For the structural question of whether this property type is reviewable at all, Lendmire’s piece Can a Trust Finance a Condotel With a Super Jumbo Bank Statement Loan? covers the ownership side in detail.
Key Terms Defined
Condotel: a condo building operated like a hotel, where owners can place their unit in a rental program.
Non-warrantable condo: a condo project that falls outside standard agency eligibility, so it needs a non-agency lender.
Super jumbo: a lender-defined tier for loans far above the conforming limit, not a regulated term. In Lendmire’s network, the super-jumbo overlays begin above $3,500,000 on a primary residence and $3,000,000 on a second home or investment property.
Bank statement loan: a loan that is reviewed around eligible deposits over 12 or 24 months instead of tax-return income.
LTV (loan-to-value): the loan amount divided by the property value. Your down payment is the remainder.
Reserves: liquid funds held after closing, counted in months of the full housing payment.
Expense ratio: the share of business deposits the underwriter treats as operating cost before counting the rest as income.
Jumbo Is a Loan-Amount Test
Anything above your county’s conforming loan limit is a jumbo loan. The test applies to the loan amount, not the price, so a larger down payment can pull a loan back under the line.
“Super jumbo” has no such definition. Each lender draws its own tiers. That matters because leverage on a condotel steps down by tier, and the tier follows the loan balance you end up with.
The Three Questions That Decide the File
A condotel bank statement file passes or fails three separate tests. Blurring them is a common reason borrowers misjudge their cash needs.
| Question | What it decides | Who answers it |
|---|---|---|
| Does the income qualify? | Whether you can carry the loan | Deposit analysis |
| What is the loan-size tier? | The leverage ladder and credit for that leverage | Loan balance |
| How is the property classified? | The leverage cap for a condotel | Project review |
Strong deposits do not fix a building that fails the project review. And a clean building does not rescue thin income. The lowest leverage across all three tests is the one that sets your down payment.
How the Down Payment Is Actually Set
The down payment is the price minus the loan, and the loan is capped at the lowest LTV that applies. Two ceilings compete.
The first is the property ceiling. Through select wholesale programs, subject to full underwriting, a condotel purchase tops out at 75% LTV on the portfolio program. The cash-out ceiling is 65% on that program and 50% on the bank program. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
The second is the loan-size ladder. Take the investment-property column, since condotels are most often bought as rentals or second homes. On a purchase, the ceilings run:
| Loan size | Investment purchase LTV | Credit for this leverage |
|---|---|---|
| $1M to $1.5M | 80% | 680 |
| $2.5M to $3M | 75% | 720 |
| $3M to $4M | 60% | 680 |
| $4M to $5M | 65%, on review | 760 |
| $5M to $6M | 55% | 680 |
Read the table as a stack, not a menu. Below about $2.5 million, the condotel’s 75% cap is the binding limit, because the ladder allows more. Between $3 million and $4 million, the ladder drops to 60% on investment property, so the loan size becomes the tighter constraint. Above $4,000,000, everything is reviewed case by case before submission, and the 65% figure is a ceiling on review, not an offer.
Second homes follow their own ladder, a few points above investment property in some bands and below in others, so a buyer planning personal use should price both classifications. Primary residence is generally not eligible for a condotel, and occupancy treatment varies by program.
One more consequence: the 75% cap holds even where the ladder would allow 80% or 85%. A $1,000,000 condotel purchase on a second home is not an 85% deal, because the property cap sits below the ladder.
A Worked Example: Down Payment, Closing Costs and Reserves
Take a $1,200,000 condotel bought as an investment property. The loan-size band allows 80% on a purchase, but the condotel cap holds it to 75%. So the down payment is at least 25% of the price.
That is the first pool. The second is closing costs and prepaids, which come on top of the down payment. The third is reserves. On a loan in this range, reserves typically run 6 months of the full housing payment, which includes HOA dues, and condotel dues run higher than a typical condo. Add 2 months for each additional financed property, to a 12-month maximum. First-time investors are asked for 12 months.
Now push the price to $3,200,000. The condotel cap says 75%, but the investment ladder at that size says 60%. The ladder wins, so the down payment moves to 40%. The loan-size tier tightened the number even though the property type did not. At this size the super-jumbo overlays also apply: a 700 credit floor, a 0x30x24 housing history and 48-month seasoning on any credit event. Cash-out proceeds cannot satisfy reserves.
The pattern is simple. Find the property cap, find the ladder figure for your balance and occupancy, and use the lower one.
How Bank Statement Income Fits In
Income does not change the down payment. It decides whether the file qualifies with the leverage the property allows. Across the wholesale network, the mechanics run in the same order on most files.
1. The underwriter gathers 12 or 24 consecutive months of personal or business statements. The bank program uses 12 months. Transaction histories never substitute for statements.
2. Non-income deposits come out, such as transfers between your own accounts and loan proceeds.
3. Business statements need at least 25% ownership, and an expense ratio applies. The fixed options are 20% for a service business with no employees, 40% for one to five employees, and 50% for six or more employees or any product business. An accountant-provided ratio is also an option.
4. Transfers from your own business into a personal account count at 100%.
5. Eligible deposits divided by the statement months give qualifying income.
That income then goes against a debt-to-income limit of up to 50%. A profit-and-loss method exists too, capped at 80%.
A 24-month lookback smooths seasonal swings, while 12 months can favor a stronger recent year. If deposits are lumpy, the choice can move your qualifying income noticeably.
Credit floors are 660 on the portfolio program, 680 on the bank program, and 700 above the super-jumbo line. Those are program floors. The ladder’s credit column often asks for more at the top leverage.
For borrowers whose liquid assets are large and income is irregular, asset paths exist. Asset allowance divides liquid assets by 36, 60 or 84 months, and assets-only qualifies with no debt-to-income test when U.S. liquid assets equal the loan plus closing costs plus sixty months of any net loss on other residential property. Retirement accounts count at 70%, or 80% at age 59.5 and up. Business funds, gifts and cryptocurrency never count.
Sourcing the Down Payment
The statements that prove income are also read as asset documentation, so the two get checked together. A large, unexplained deposit hurts twice: it may be excluded from income, and it raises questions about where your cash to close came from.
Retirement funds count at a discount, and borrowed funds need to be traced and explained. Move money well before you apply and keep a paper trail for any transfer above ordinary activity.
If you plan to pull equity from another property to fund the purchase, remember the cash-out limits: unlimited proceeds at or below 60% LTV, and a $1,500,000 cash-in-hand cap above 60% on the portfolio program. Leverage and reserves vary by lender and program; the final terms follow the full file review.
Bank Statement Versus DSCR on a Condotel
A condotel buyer with strong deposits and thin rental coverage may prefer the bank statement route. A buyer whose rent clears the payment comfortably may find a DSCR loan simpler. Investors can read the basics in Lendmire’s complete DSCR loans guide.
| Factor | Bank statement | DSCR |
|---|---|---|
| Reviewed on | Borrower deposits | Property rent vs. payment |
| Property income matters | Not for qualification | Central |
| Leverage and reserves | Own ladder, by loan size | Own ladder |
Neither route changes the project review. The building gets the same scrutiny either way.
Where the General Rule Breaks
Same building, different answers. Each non-agency lender sets its own project rules, so a building declined by one may be reviewable by another. This is where comparing programs earns its keep.
Rental-pool terms. Mandatory pools, owner-use limits and operator splits shape the project review. On a bank statement file the property’s income does not drive qualification, but pool terms still affect whether the building is eligible.
Appraisal gaps. Condotel comps are thin. A low appraisal lowers the loan, which raises the cash you need to close.
Warrantable status can shift. If a project changes classification, resale and refinance options change with it.
Texas. A 50(a)(6) home-equity loan takes a 5-point LTV reduction and stops at $3,000,000 on the portfolio program.
Above $4,000,000. Every figure is reviewed case by case before submission. Treat any leverage number at that size as a starting point for a conversation.
What Raises or Lowers the Cash You Bring
The cash moves in three ways. Larger balances lower the allowed LTV. Second-home and investment classification each run on their own ladder, below primary residence at most sizes. And weaker credit can drop you to a lower cell on the ladder, since several bands require 720 or 760 for top leverage.
Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Pre-Application Checklist
- Twelve or 24 consecutive statements, with no gaps, and ownership documentation for business accounts.
- An accountant-provided expense ratio, if the fixed ratios understate your margins.
- The condo questionnaire, HOA budget and rental-program terms for the building.
- A written explanation of any large deposit.
- Cash for the down payment, closing costs and reserves, held separately and sourced.
- A decision on occupancy, since classification moves the ladder.
Frequently Asked Questions
How much do I need down on a condotel with a bank statement loan?
At least 25% on a purchase, because condotels cap at 75% LTV through select wholesale programs, subject to full underwriting. The loan-size ladder can raise that. On an investment property between $3,000,000 and $4,000,000, the purchase ceiling is 60%, so the down payment is 40%. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Does bank statement income change the condotel’s leverage cap?
No. Deposits decide whether you qualify, and the property type decides the cap. Strong deposits will not move a condotel above 75%, and they will not fix a building that fails the project review.
Can I use gift funds for the down payment?
Gifts do not count toward assets on these programs. Plan to fund the down payment from your own documented accounts, and keep statements showing the money’s origin.
What happens above $4,000,000?
Every file is reviewed case by case before submission, and the bank program’s own ladder takes over, with terms from $4,000,000 to $5,000,000 set on review. Treat posted ceilings as the upper bound of a discussion. Second homes and investment property run lower at the same size.
Is a super jumbo loan an official category?
No. Only the conforming limit set by the FHFA is official. Super jumbo is a label each lender defines, which is why the tiers here come from Lendmire’s wholesale network and may differ from the tiers lenders publish.
Next Steps
Reach the team at 828-256-2183 or request a quote. Consumer mortgage lending is licensed in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA. Programs change and every file is underwritten individually. Nothing here is a commitment to lend.
Condotel buyers who start with the building’s project review, then the loan-size tier, and only then the deposits, tend to find their real down payment before they ever go under contract.
For current guidelines and terms, see Lendmire’s super jumbo bank statement loan programs page.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
As a DSCR and non-QM mortgage broker, Lendmire (NMLS# 2371349) connects investors with wholesale lending channels across 41 markets, including Washington, D.C. The property’s rental income, not the borrower’s traditional personal-income documentation, is central to lender review on DSCR files, which works for self-employed operators and portfolios beyond four financed properties. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. FHFA Conforming Loan Limits
This article is part of Lendmire’s super jumbo bank statement loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Super Jumbo Bank Statement Rules Work for a New Business in Your Old Field · How Much Down Payment Does an Interest-Only Super Jumbo Bank Statement Loan Need? · How Much Can You Borrow With a Super Jumbo Bank Statement Loan?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.