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
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.
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.