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Condotel Loans

SUBMIT YOUR LOAN SCENARIO
PROGRAM HIGHLIGHTS
Condotel vs. Non-Warrantable Condo
INCOME DOCUMENTATION
FAQS

Condotels — hybrid condo/hotel properties in resort markets, urban centers, and second-home destinations — are among the most consistently underserved property types in mortgage lending. Most buyers don’t know financing exists for them. Many who do assume it requires all cash or hard money. LendSure Mortgage Corp. (NMLS #1326437) offers a dedicated Condotel Loan program with competitive terms, fast pre-qualification, and flexible income documentation.

If you have a condotel client or a property you’re unsure how to classify, submit your scenario and we’ll review it within 24 hours.

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Condotel Lending

Program Highlights

  • Loan amounts up to $3,000,000
  • LTV up to 75% for purchases
  • LTV up to 70% for rate-and-term refinances
  • LTV up to 65% for cash-out refinances
  • Renter concentration up to 100% permitted
  • Investment properties and second homes only
  • LLC and trust vesting accepted
  • Short-term rental income (Airbnb, VRBO) accepted — averaged over 12 or 24 months via annual platform statements, provided the area and HOA permit short-term rentals
  • Interest-only payment option available; IO payment used for DSCR qualification
  • Full Documentation, Full Doc Self Employed, 12 and 24-Month Bank Statement, and DSCR documentation options
Condotel funding

What Makes a Property a Condotel

A condotel is a condo unit within a project that operates like a hotel — it has a registration or check-in desk, offers cleaning and hotel-like amenities, and typically gives unit owners the option to participate in a rental pool. They appear most commonly in Florida, Las Vegas, ski resort markets, and urban centers, and are increasingly found in second-home destinations nationwide.

The key eligibility requirements for our program are straightforward: the building must not impose a mandatory rental pool, the unit owner must be able to occupy the property, and the unit must have a full livable kitchen — not just a kitchenette or mini fridge. Minimum square footage is 600 sqft, though exceptions have been approved below that when a full kitchen and compensating factors are present.

We will not lend when the complex name includes “Hotel” or “Motel,” the rental pool is mandatory with no opt-out, or the owner is restricted from occupying the unit.

Condotel vs. Non-Warrantable Condo: Know the Difference

A common and costly misclassification: a luxury residence situated above a hotel brand — a Four Seasons, Ritz-Carlton, or similar property — is typically a non-warrantable condo due to commercial influence, not a condotel. That distinction matters because non-warrantable condos qualify for LTV up to 80%, while condotels are capped at 75%. Knowing which category a property falls into protects your borrower’s LTV and pricing before submission.

The practical test: does the building have a functioning hotel registration desk and rental pool managed by the HOA? If yes, it’s likely a condotel. If it simply sits above or adjacent to a hotel, it’s likely a non-warrantable condo.

Condotel loan

Income Documentation Options

All of our income types are available for condotel financing — DSCR, bank statement (12 or 24 months), full documentation, asset depletion and qualifier, and foreign national. A condotel purchase does not limit how a borrower qualifies. Self-employed buyers, international investors, retirees, and cash-flow investors can all be structured here.

For DSCR loans, we qualify using gross rents with no vacancy deduction. When short-term rental income exceeds the appraiser’s long-term rent estimate, we can use the higher figure with documentation. When long-term rents produce a weak DSCR ratio, switching to short-term rental income has saved deals.

The Opportunity Most Brokers Miss

Condotel owners — and condo hotel buyers who purchased in cash — frequently don’t know financing is available. That means a large pool of potential clients who have either never been approached about a mortgage or were told no by a conventional lender. Delayed financing and cash-out refinances on properties purchased in the last year or two are viable options. One condotel client often becomes two or three as their portfolio grows.

Ready to Submit a Scenario?

Submit your loan scenario or become an approved broker to get started. Download our Condo Questionnaire for your next condotel deal.

Frequently Asked Questions

Can a condotel be purchased as a second home?

Yes. Condotels are available as investment properties and second homes.

Is Airbnb income usable for DSCR qualification?

Yes, using annual platform statements averaged over 12 or 24 months — provided the property’s municipality and HOA permit short-term rentals.

What if the property is smaller than 600 sqft?

Exceptions have been approved below 600 sqft — and as low as 475 sqft — when the unit has a full livable kitchen and compensating factors support the loan.

Can the loan close in an LLC?

Yes. LLC and trust vesting are both accepted.

Is the DSCR program available on condotels?

Yes, up to 75% LTV and loan amounts up to $3,000,000.

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(888) 707-7811

Contact Us: (888) 707-7811