What makes a project a condotel
Front desk check-in, a rental or management program run on site, hotel-style amenities, room-style units, or units that are marketed nightly. Lenders look at how the building functions, not what it is called in the listing.
Why the lender pool is smaller
Agency programs generally exclude hotel-operated projects, so these loans live with portfolio and non-QM lenders. Fewer lenders means the structure varies more between them, and matching the right one to the specific building matters.
How to approach it
Identify the project first. Once I know the building, I can tell you which lenders currently work in it and what they will want to see — which is far more useful than a general answer about condotels.
Common questions
- Can I still use the on-site rental program?
- Often yes — that is frequently the point of owning in these buildings. How the rental income is treated for qualifying depends on the program we use.