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 5/20/2026

DSCR investor loan for short-term rental properties, allowing up to 80% LTV for purchase and rate-term refinances with no limit on financed properties.

FICO 620+LTV up to 80%dscr-only

DSCR Loan for Investment Properties

confirmed 5/14/2026

A 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.

FICO 620+LTV up to 85%dscr-only, alt-doc

Bank Statement Loan

confirmed 5/10/2026

Flexible 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.

LTV up to 90%12mo-bank-stmt, 24mo-bank-stmt

DSCR Loan for Investment Properties

confirmed 5/13/2026

Investor-focused DSCR program for residential properties, including non-warrantable condos and multi-unit properties, with no income ratio requirements.

FICO 620+LTV up to 85%dscr-only

Bridge Loan for Investors

confirmed 5/20/2026

A 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.

FICO 700+LTV up to 80%

DSCR Loan for Investment Properties

confirmed 5/20/2026

A 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.

FICO 660+LTV up to 80%DSCR 0.8+dscr-only

DSCR Loan for Investment Properties

confirmed 6/8/2026

DSCR loan program for investment properties with specific broker-focused underwriting.

dscr-only

DSCR Loan for Investment Properties

confirmed 6/8/2026

DSCR loan program for residential 1-4 unit, multifamily, and mixed-use investment properties.

dscr-only

DSCR Loan for Investment Properties

confirmed 5/18/2026

A 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.

FICO 620+LTV up to 85%dscr-only

DSCR Loan for Investment Properties

confirmed 5/15/2026

DSCR-based financing for mixed-use (2-8 units) and residential (5-10 units) investment properties with loan amounts up to $3M.

FICO 720+LTV up to 75%DSCR 1+dscr-only

Non-QM Investor Loan

confirmed 5/17/2026

A specialized loan program for non-warrantable condominiums, including projects with active litigation, high non-owner occupancy, or commercial use.

Jumbo Investor Loan

confirmed 5/13/2026

Jumbo loan program for primary, second, and investment properties with loan amounts up to $3 million, available for purchase and refinance.

FICO 660+LTV up to 80%

Non-QM Investor Loan

confirmed 5/11/2026

An investment property loan program offering flexible income documentation options including bank statements, 1099s, and alt-doc for self-employed borrowers and investors.

LTV up to 85%12mo-bank-stmt, 24mo-bank-stmt

DSCR Loan for Investment Properties

confirmed 5/10/2026

A 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.

LTV up to 85%dscr-only

Non-QM Investor Loan

confirmed 5/10/2026

An investment property loan program that now permits condotels and offers updated guidelines for non-warrantable condominiums.

FICO 720+LTV up to 60%alt-doc

DSCR Loan for Investment Properties

confirmed 5/12/2026

A 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.

FICO 660+LTV up to 80%dscr-only

Bridge Loan for Investors

confirmed 5/12/2026

Short-term bridge financing for investors to acquire or refinance distressed or non-warrantable condo units.

Non-QM Investor Loan

confirmed 5/9/2026

Financing 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 5/15/2026

Jumbo loan program for primary, second, and investment properties with loan amounts up to $3 million, allowing non-warrantable condos.

FICO 660+LTV up to 80%

Bank Statement Loan

confirmed 5/10/2026

A 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.

FICO 600+LTV up to 90%12mo-bank-stmt, 24mo-bank-stmt

Non-QM Investor Loan

confirmed 5/19/2026

A 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.

FICO 660+LTV up to 90%full-doc, 12mo-bank-stmt

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?

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Not ready to apply?

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