Condotel loans for condo-hotel units
Condo-hotel units come with hotel services, a rental program and daily rentals, and most conventional lenders will not finance them. We work with lenders that do.
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Overview
A condotel, or condo-hotel, is a condominium unit in a building that operates like a hotel. These buildings usually have a front desk, housekeeping, a rental program run by a management company, and daily or nightly rentals. South Florida has many of them, including condo-hotel projects such as E11EVEN in Miami (named only as an example of the property type). Fannie Mae and Freddie Mac generally treat these projects as ineligible, so most conventional lenders will not finance them.
Condotel financing comes from portfolio and non-QM lenders that review the building as a hotel-style project. They look at the rental program agreement, any limits on owner use, unit size, the management company and the project's finances. Units are financed as second homes or investment properties, not as a primary residence. Expect a larger down payment and more reserves than for a typical condo, and some programs can use rental income or a DSCR-style calculation.
Not every condo-hotel project is approved, even by lenders that offer condotel loans, so the project review comes first. QMS gathers the condo questionnaire and rental program documents, checks which lenders will accept the building, and compares their terms, ideally before you sign or release a deposit. Some lenders also offer condotel options for foreign nationals. All loans are subject to credit approval and lender guidelines.
Is it a good fit?
- Are buying a unit in a building that operates like a hotel
- Want a second home you can rent through the building's program when you are away
- Are buying a condo-hotel unit as an investment
- Were told by a bank that the building is not eligible
- Have funds for a larger down payment and reserves
- Live abroad and are buying in South Florida, with select lenders
What you'll need
- Purchase contract
- Condo questionnaire and association budget
- Rental program or management agreement
- Income documentation or alternative documentation, depending on the program
- Bank statements showing down payment, closing costs and reserves
- Government-issued photo ID or passport
How it works
How it works with QMS
Review the project
We collect the building's documents and confirm which lenders will accept the condo-hotel.
Compare lenders
We compare condotel programs on documentation, reserves and rental income rules.
Underwrite and close
We submit your file, clear project and borrower conditions, and coordinate closing.
FAQ
Condotel (Condo Hotel) loan FAQs
Don't see yours? Call us or send a message. We answer the same business day.
305-425-1990Why won't most lenders finance a condotel?
Fannie Mae and Freddie Mac generally do not buy loans on condo-hotel units, because the buildings operate more like a hotel business than a residential condominium. Features such as a front desk, daily rentals, mandatory rental programs or limits on owner use make a project ineligible for conventional financing. Portfolio and non-QM lenders fill that gap, each with its own project rules.
Can I live in a condotel unit full time?
Condotel financing is generally available only for second homes and investment properties, and many condo-hotel buildings also limit how long owners can stay in their own units. If you plan to live in the unit as your primary residence, check the building's rules first. If they do not fit, we can help you look at financing for a standard condo instead.
Can rental income help me qualify?
Some lenders count rental income from the building's program, often based on the unit's rental history, and some offer DSCR-style condotel loans that qualify on the rent. Others qualify you on your personal income only. The rules differ, so we compare lenders based on how your income is documented and how the unit has performed in the rental program.
Is QMS affiliated with any condo-hotel building?
No. QMS is an independent mortgage broker and is not affiliated with any developer, building or hotel brand, including any project named on this page. We review each project on its own and match it with lenders that will finance it. If you are considering more than one building, we can check the financing options for each before you commit.
Get started
Know your numbers before you make an offer.
Tell us about your scenario and we'll price it across our lenders the same business day.