Financing a condotel
Can I get a rental loan on a condotel unit?
A condotel unit is not a hard condo problem so much as a short-term-rental problem wearing a condo’s deed — the relevant lender population here is short-term-rental DSCR shops, not the broader rental universe, and no lender in this directory publishes a condotel-specific policy on top of that.
- Short-term rental DSCR loan A condotel functions like a hotel-managed short-term rental, so the lenders equipped to underwrite it are the same ones that underwrite short-term rental DSCR generally — not the standard 30-year rental desk.
- Standard long-term rental DSCR loan A condotel is typically rented nightly through an on-site rental program, not on a long-term lease, so a lender that only underwrites off a signed lease has no rent figure to work with.
Lenders in the directory
No lender here publishes a rule for this
This is an underwriting judgment, not a published threshold. None of the 37 lenders in the directory states a policy on it, so there is no honest way to build a shortlist — and a list computed only from which products a lender writes would tell you nothing you could act on.
What matters here is how the file is presented rather than which lender receives it. The sections below cover that. When you are ready to approach lenders, the directory shows what each one does publish, with the date it was verified.
Why "condotel" is really a short-term rental question
A condotel unit is deeded real estate, but it is almost always operated through an on-site rental program with hotel-style amenities and nightly or weekly bookings rather than long-term leases. That operating model, not the condo structure itself, is what most lenders react to — the same underwriting friction shows up whenever a property is income-producing through nightly bookings rather than a signed lease, which is exactly what the short-term-rental DSCR lenders in this directory are built to evaluate.
What the appraiser cannot easily find
Comparable sales for condotel units are typically limited to other units in the same building or a small number of similar hotel-condo hybrids nearby — there is rarely a broader comparable pool the way there is for a standard condo. Appraisers sometimes apply a value discount relative to a non-rental-restricted unit in the same market to reflect the more limited buyer pool and financing difficulty, which can affect the loan-to-value math independent of anything the borrower does.
The secondary market question
Most DSCR loans are eventually sold to investors who buy pools of similar loans, and condotel collateral is one of the property types those buyers are most likely to exclude or price down. That downstream reality is part of why fewer lenders are set up to originate condotel loans in the first place — it is not simply pickiness at origination.
None of this is published — treat the roster as a starting point, not a guarantee
No lender in this directory has published a condotel-specific credit, DSCR, or leverage threshold. The roster below reflects lenders who write short-term-rental DSCR generally; whether any specific one will finance a specific condotel building is a conversation to have directly, likely starting with the building’s rental program agreement and HOA documents.
What to have ready
- On-site rental management agreement and historical nightly revenue
- HOA documents confirming the rental program structure
- Twelve months of platform or management-company statements if available
Questions
Is a condotel financed like a regular condo?
Why do so few lenders write condotel loans?
What should I gather before calling a lender about a condotel?
Terms used on this page
- Short-Term Rental Investing — Short-term rental investing means owning property rented by the night or week through platforms such as Airbnb and Vrbo, rather than on annual leases.
- Debt Service Coverage Ratio (DSCR) — DSCR is a property’s gross monthly rent divided by its total monthly mortgage payment. A DSCR of 1.00 means the rent exactly covers the payment; 1.25 means rent exceeds the payment by 25%.
- As-Is vs. ARV Appraisal — An as-is appraisal reports a property’s value in its current condition on the inspection date. An ARV appraisal reports the value the property is expected to reach once specified renovation is finished. Lenders use one, the other, or both depending on the loan.