A condotel, short for condominium hotel, is a unique property type that combines condominium ownership with the ability to rent the unit on a short-term basis. These properties are commonly found in resort destinations, vacation markets, and tourist-heavy locations where owners may occupy the property part of the year and generate rental income when not using it.

While condotels can offer attractive ownership opportunities, financing them has traditionally been more challenging than financing a standard condominium. Many conventional mortgage programs have restrictions on condo-hotel projects, making it difficult for borrowers to secure financing through traditional channels.

The Condotel Program helps bridge that gap by providing financing solutions specifically designed for these unique property types.

Why Condotels Can Be Difficult to Finance

Many resort-style condominium projects operate differently from traditional residential condominiums. Some allow daily rentals, short-term occupancy, or participation in rental management programs. Because of these characteristics, certain projects may not meet conventional agency requirements.

As a result, borrowers often discover that a property they love may not qualify for traditional financing options. This can create challenges for both homebuyers and Realtors working in vacation and resort markets.

The Condotel Program was designed to address these challenges by offering financing options for properties that may fall outside standard lending guidelines.

Flexible Qualification Options for Unique Properties

One of the biggest advantages of the Condotel Program is the flexibility it provides when qualifying borrowers.

Eligible borrowers may have access to Full Documentation, Bank Statement, or DSCR qualification options, depending on their scenario. This creates additional pathways to financing for individuals purchasing resort-area properties or investment opportunities.

The program also allows short-term rental income to be considered when qualifying, making it a valuable solution for borrowers purchasing properties that generate income through daily or vacation rentals.

Financing Options Designed for Today's Resort Market

The demand for short-term rental properties continues to grow in many vacation destinations across the country. Buyers are increasingly interested in properties that offer personal enjoyment while also providing rental income opportunities.

The Condotel Program supports these goals by allowing financing for owner-occupied residences, second homes, and investment properties. Additionally, eligible borrowers may close in an entity when appropriate.

Program highlights include:

• Up to 75% LTV Purchase
• Up to 65% LTV Cash-Out Refinance
• Minimum 600 FICO
• Loan Amounts Up to $4 Million
• No Minimum Square Footage Requirement
• Airbnb and Daily Rental Properties Accepted
• Entity Vesting Available
• No Reserve Requirements

These features provide flexibility for a wide range of financing scenarios.

A Valuable Tool for Buyers and Realtors

For buyers interested in resort-area properties, vacation homes, or income-producing rental opportunities, securing financing is often one of the biggest hurdles. The Condotel Program offers a solution that aligns with the realities of today's short-term rental market.

For Realtors, having access to financing options for condo-hotel projects can help expand opportunities for clients and support transactions that may otherwise face financing obstacles.

Whether the goal is purchasing a resort property, financing a vacation rental, or refinancing an existing condotel, this program offers a practical solution for borrowers seeking alternatives to traditional financing.

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