Condotel Financing for Investment Properties
A condotel is a condominium unit located inside a hotel-style building, often with daily-stay rentals, front-desk service, and on-site management. Conventional Fannie/Freddie financing rejects most condotels because the project fails warrantability tests. Specialty investor lenders fill that gap with DSCR and non-QM products built specifically for condotel cash flow.
Highlights
- •Daily-stay and short-term rental income accepted
- •Hotel amenities and rental program participation allowed
- •Smaller unit sizes (under 500 sqft) considered
- •No commercial space ratio caps that conventional imposes
- •Up to 70–75% LTV typical, sometimes higher with strong DSCR
Who it's for
Investors buying short-term rental units in resort markets such as Orlando, Las Vegas, Miami Beach, Gulf Shores, Hilton Head, and Honolulu.
Active programs that fit
DSCR Loan for Investment Properties
confirmed 5/20/2026DSCR investor loan for short-term rental properties, allowing up to 80% LTV for purchase and rate-term refinances with no limit on financed properties.
DSCR Loan for Investment Properties
confirmed 5/14/2026A non-QM DSCR program for investors, including first-time investors, that allows for negative cash flow properties and offers flexible qualification options like asset utilization.
Bank Statement Loan
confirmed 5/10/2026Flexible income qualification options including bank statements, 1099s, and tax returns for primary residences, second homes, and investment properties with loan amounts up to $3.5M.
DSCR Loan for Investment Properties
confirmed 5/13/2026Investor-focused DSCR program for residential properties, including non-warrantable condos and multi-unit properties, with no income ratio requirements.
Bridge Loan for Investors
confirmed 5/20/2026A short-term bridge loan with terms ranging from 12 to 24 months, designed for investors with at least 2 years of experience. This program does not require a DSCR calculation and offers up to 80% LTV.
DSCR Loan for Investment Properties
confirmed 5/20/2026A 30 or 40-year fixed-term bridge loan for investment properties that requires a DSCR of at least 0.80. This program allows for up to 80% LTV and is available for single-family homes, 2-4 units, non-warrantable condos, and condotels.
DSCR Loan for Investment Properties
confirmed 6/8/2026DSCR loan program for investment properties with specific broker-focused underwriting.
DSCR Loan for Investment Properties
confirmed 6/8/2026DSCR loan program for residential 1-4 unit, multifamily, and mixed-use investment properties.
DSCR Loan for Investment Properties
confirmed 5/18/2026A business purpose DSCR loan for investment properties that does not require personal income documentation or a mortgage license. The program allows for up to 85% LTV on purchases and rate-term refinances with a minimum FICO of 620.
DSCR Loan for Investment Properties
confirmed 5/15/2026DSCR-based financing for mixed-use (2-8 units) and residential (5-10 units) investment properties with loan amounts up to $3M.
Non-QM Investor Loan
confirmed 5/17/2026A specialized loan program for non-warrantable condominiums, including projects with active litigation, high non-owner occupancy, or commercial use.
Jumbo Investor Loan
confirmed 5/13/2026Jumbo loan program for primary, second, and investment properties with loan amounts up to $3 million, available for purchase and refinance.
Non-QM Investor Loan
confirmed 5/11/2026An investment property loan program offering flexible income documentation options including bank statements, 1099s, and alt-doc for self-employed borrowers and investors.
DSCR Loan for Investment Properties
confirmed 5/10/2026A non-QM loan program for condotel properties, offering flexible financing options for purchase, rate-term, and cash-out transactions for both primary residences and investment properties.
Non-QM Investor Loan
confirmed 5/10/2026An investment property loan program that now permits condotels and offers updated guidelines for non-warrantable condominiums.
DSCR Loan for Investment Properties
confirmed 5/12/2026A 30-year fixed DSCR loan program for 1-4 unit investment properties, including condos and PUDs, requiring no tax returns and offering up to 80% LTV for purchases.
Bridge Loan for Investors
confirmed 5/12/2026Short-term bridge financing for investors to acquire or refinance distressed or non-warrantable condo units.
Non-QM Investor Loan
confirmed 5/9/2026Financing solutions for condo projects that do not meet standard Fannie Mae or Freddie Mac guidelines, including those with litigation, high commercial space, or investor concentration.
Jumbo Investor Loan
confirmed 5/15/2026Jumbo loan program for primary, second, and investment properties with loan amounts up to $3 million, allowing non-warrantable condos.
Bank Statement Loan
confirmed 5/10/2026A non-QM bank statement program for service and tip industry workers that uses 12-24 months of bank deposits to calculate income without requiring tax returns.
Non-QM Investor Loan
confirmed 5/19/2026A closed-end second lien mortgage program available for owner-occupied, second home, and investment properties with fixed-rate terms of 10, 20, and 30 years.
Frequently asked questions
Why won’t conventional lenders finance condotels?
Fannie Mae and Freddie Mac require condo projects to pass a warrantability checklist that excludes daily rentals, front-desk hotel services, mandatory rental pools, and projects with high commercial space ratios. Most condotels fail at least one of these tests.
What rate premium should I expect on a condotel loan?
Condotel pricing typically runs 0.5–1.25% above a comparable single-family DSCR rate. Lenders price the additional risk of a non-warrantable, hospitality-driven asset.
Can I qualify using projected short-term rental income?
Yes. Most condotel DSCR programs use a 12-month projection from AirDNA, an existing rental program statement, or a market-rent appraisal addendum.
Is there a minimum unit size?
Some lenders require 500 sqft, others go down to 400 or have no minimum if the unit is fully self-contained (full bath and kitchenette).
Got a condotel scenario?
Tell us the deal - we'll match you with the right lender and come back with current pricing.
Common questions on this topic
What property types are eligible for DSCR loans?
Single-family, 2-4 unit, condos, townhomes, and 5-8 unit small multifamily. Some programs extend to mixed-use, condotels, and rural properties.
Can I get a DSCR loan on an Airbnb property?
Yes - via short-term rental DSCR programs that qualify on STR income (AirDNA projection or T12 statement) instead of long-term rental comps.
Strategy guides
13 min read
Short-Term Rental Investor Guide: Markets, Numbers, Operations
Complete short-term rental investor guide. How to choose markets, run the numbers, finance with STR-DSCR, and operate at scale.
10 min read
Condotel Investor Guide: Markets, Financing, and Operating Math
Complete condotel investor guide. Top US condotel markets, specialty financing structure, rental program economics, and HOA risks.
Related programs
Short-Term Rental DSCR Loans (Airbnb / VRBO)
DSCR loans that qualify on short-term rental income. Airbnb, VRBO, and direct-booking properties. Use AirDNA projections or 12-month T12 STR statement.
Non-Warrantable Condo Loans for Investors
Investor financing for non-warrantable condos. Litigation, single-entity ownership, high commercial space ratio, and short-term rental projects all eligible.