Condotel Loans in Arizona
Arizona's condotel market centers on Scottsdale (W Scottsdale, Westin Kierland), Phoenix (downtown high-rise hotels with branded residences), and Sedona. Smaller market than FL but quality assets. Specialty lenders familiar with AZ project review.
Top Arizona markets for condotel
- Scottsdale (W, Westin, Four Seasons): Branded hotel residence units; strongest condotel performance.
- Downtown Phoenix: Hotel-condo hybrids; smaller market.
- Sedona: Resort condotels at Hilton, Hyatt; limited inventory.
Arizona quick facts
- •Smaller market than FL
- •Branded-residence concentrations in Scottsdale
- •State preemption favorable to STR
Active programs available in Arizona
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.
Arizona Condotel FAQs
Are AZ condotels typically rental-pool mandatory?
Mixed. Some branded residences (W Scottsdale) historically required rental program participation with revenue share to operator. Read the project documents carefully - terms vary.
AZ STR rules apply to condotels?
Yes - AZ state preemption applies. Most condotels operate as commercial hotel-services entities and are not subject to residential STR rules.
General condotel 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.
Got a Arizona condotel scenario?
Tell us the deal - we'll match you with the right Arizona lender and come back with current pricing.