why our team loves Condotel Loans
Condotels are smart investments that can be rental-income producers, vacation homes, or both. Finding financing for them can be tricky, unless you're working with an experienced lender like us.
Condotel Loans At A Glance
Condotels are condominiums that function like hotel rooms. Because of their hotel-like features, they’re considered non-warrantable by Fannie Mae and Freddie Mac. That’s where portfolio and condotel-specific loan programs come in.
Highlights
- Available For Non-Warrantable Condos: Designed for units that don’t meet conventional condo guidelines.
- Great for Second Homes Or Investments: Use it for personal use, rental income, or both.
- Higher Down Payments Required: Typically 20%–30% down, depending on occupancy and lender.
- Flexible Use Options: Live in it, rent it, or do a mix of both — depending on HOA rules.
- Ideal For Vacation Markets: Perfect fit for Florida’s short-term rental hotspots.
Condotel Loan Guidelines
- Loan Type: Non-QM or portfolio loan, not eligible for Fannie/Freddie.
- Down Payment: Typically 20%–30%,varies.
- Occupancy Types: Second home or investment property, primary residence not eligible.
- Appraisal: Must support condotel market comps and property features.
- Condo Project Requirements: Short-term rentals and hotel-like amenities acceptable.
- Property Management: On-site management and front desk services allowed.
- Reserves: Higher asset reserves may be required post-closing.
Pros of Condotel Loans
- Finance What Others Won’t: Traditional lenders often won’t touch condotels, but we will.
- Rental Potential: Earn income from nightly or weekly guests when you're not using the unit.
- Location, Location, Location: These are typically in prime real estate zones with strong appreciation and demand.
- Second Home Friendly: Use it as your getaway without needing to buy a full-time residence.
Best for…
Buyers seeking a vacation home with rental income potential.
Real estate investors looking for a non-traditional, cash-flowing property.
Clients with higher down payments and strong credit profiles.
Anyone shopping in coastal or resort markets where condotels are common.
Free Guides & Resources
Our favorite kind of buyer? A confident one. Brush up on your loan knowledge, get an accurate quote, and let's get to it.
