Condotel · Cash-Out Refinance
Condotel Cash-Out Refinance Calculator
Quick answer: The cash you can pull from a condotel is the lender's maximum loan-to-value × the unit's appraised value, minus your current balance and closing costs. Condotel cash-out limits are set by each lender, not by Fannie Mae or Freddie Mac, so enter the max LTV from your term sheet to see your gross cash, net cash and new principal and interest.
Built by Jim Blackburn · NMLS #1072866 · $500M+ closed · 7× Scotsman Guide Top Producer
Enter the max cash-out LTV and interest rate from your term sheet to see every result. The unit value, balance and closing costs start with example amounts; replace them with yours.
Your condotel unit
The cash-out offer (from your term sheet)
Max cash-out LTV is the most a lender will lend as a percentage of the appraised value on a condotel cash-out. It varies by lender and project, so use the figure on your term sheet. Closing costs are taken from the new loan here.
Enter the max LTV from your term sheet
Estimates only — not a commitment to lend or a Loan Estimate. Jim Blackburn, NMLS #1072866.
How This Condotel Cash-Out Calculator Works
The max new loan is the unit's value times the max LTV you enter. Gross cash out is that loan minus your current payoff. Net cash is what's left after the closing costs come out of the new loan. The new principal and interest is calculated on the full max loan at the rate and term you enter, so if you borrow less, the payment will be smaller.
Example: a $480,000 unit with a 60% max LTV from a term sheet supports a $288,000 loan. Paying off a $190,000 balance leaves $98,000 gross; after $8,500 in closing costs, about $89,500 net.
Why Condotel Cash-Out Limits Vary So Much
Fannie Mae's guidelines treat projects that operate as hotels as ineligible, so there's no single agency cash-out limit for condotels. Each lender sets its own based on how it views the building, the hotel operator, the rental program and your file, and many set a tighter limit for cash-out than for a purchase or rate/term refinance. That's why the max LTV is an input here: two lenders can look at the same unit and offer very different loan amounts.
How a Condotel Is Valued
The appraiser looks mainly at recent sales of units in the same building or in similar condo-hotels nearby, adjusted for size, view and floor. The rental program's performance can also come into it. If few units have sold recently, the value can come in lower than you expect, which shrinks the max loan, so it's worth running the calculator with a more conservative value too.
Before You Pull Equity Out of a Condotel
A larger loan means a larger payment against the same rental income. Check that the unit's net rent from the hotel program still covers enough of the new monthly cost, including taxes, insurance and condo-hotel fees. The condotel purchase calculator shows the rent coverage ratio if you want to run that check.
Frequently Asked Questions
How much cash can I get from a condotel cash-out refinance?
Multiply the unit's appraised value by the lender's max cash-out loan-to-value, then subtract your current balance and the closing costs. For example, a $480,000 value at a 60% max LTV supports a $288,000 loan; after a $190,000 payoff and $8,500 in costs, about $89,500 is left.
What is the max LTV on a condotel cash-out refinance?
There isn't one standard figure. Condotels generally fall outside Fannie Mae and Freddie Mac condo guidelines, so each lender sets its own cash-out limit based on the project, the rental program and your credit. Use the number on your term sheet.
How is a condotel valued for a cash-out refinance?
An appraiser compares recent sales of units in the same building or similar condo-hotels, adjusted for size, view and floor, and may consider the rental program's performance. Thin sales activity can make the value harder to support, so plan for a range.
Can I use condotel rental income to qualify for a cash-out refinance?
Some lenders qualify a condotel cash-out on the unit's rental income, similar to a DSCR loan, and others use your personal income. Either way, recent owner statements from the hotel operator help show how the unit performs.
Are closing costs taken out of the cash on a condotel cash-out refinance?
They usually are, and this calculator assumes so: net cash is the new loan minus your payoff and closing costs. If you pay the costs in cash instead, your net cash is the gross cash-out figure.
Can a condotel cash-out refinance fund another property?
Generally yes, but investor loans are often business-purpose loans, and the lender may ask how you plan to use the funds and how much you'll keep in reserves. Tell the lender up front so the term sheet reflects it.
Want to Know What Your Condotel Could Free Up?
Send us the building, your balance and what you'd like to do with the cash and we'll look at cash-out options for that project.
- Only 2 minutes to complete
- No credit score impact
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Important Disclaimer
This calculator estimates condotel cash-out refinance proceeds and the new principal and interest using the numbers you enter. It is not a Loan Estimate, a rate quote, an appraisal, a loan approval or a commitment to lend. Maximum cash-out loan-to-value, rate and terms are set by each lender and vary; use the figures on your own term sheet. The appraised value may differ from the value you enter. Project-eligibility description reflects the Fannie Mae Selling Guide, B4-2.1-03 Ineligible Projects (version dated 08/05/2026), reviewed October 30, 2026. All borrowers must qualify based on lender and property guidelines. Jim Blackburn, NMLS #1072866. Equal Housing Opportunity.