Condotel Loan Solutions
While many lenders shy away from providing financing for condotels, as condotel lender, we provide loans for condos of all types. We offer condotel loans as well as loans for non-warrantable condo projects. If you have your eye on a condo hotel and you’re struggling to find condotel financing, don’t give up! We want to help you get into the property you want.
Low Interest Rates
Purchase, Refinance or Cash Out Loans
Primary Residence or 2nd Home
What is a Condotel?
The allure of the condotel concept is particularly attractive to empty nesters and busy professionals seeking a primary residence. With a high-service lifestyle, upscale amenities, and minimal upkeep required, it offers a unique combination of luxury and practicality.
Condotels are also gaining popularity as investment properties in resort areas. As the owner of a condo unit, you can benefit from rental income to offset the cost of your unit, as well as enjoy the use of your vacation home with the peace of mind that comes with on-site property management.
The Hurst Lending Difference
Funding Choices
Low downpayment options available.
Quick Decisions
With a quick closing and no red tape.
Great Rates
We offer some of the best rates available.
Problem Solving
Creative approaches for unique situations
Competitive Condotel Rates
Our condotel loan rates offer favorable and attractive terms.
Frequently Asked Questions
How can we tell what we are buying is a condotel or just a regular condo?
A condotel is usually found in a resort area such as a beachfront town or other tourist destination like Orlando, FL (Disney World) or a mountain town in Colorado. Here are a few of the rules Fannie Mae and Freddie Mac use to define a condotel:
- The predominant use of the units in a condo complex are short-term rentals
- It is professionally managed by a hotel or resort management company
- It has a legal or common name that contains hotel, motel, or resort, unless the use of the term is historical in nature
- It has online ratings through hotel ratings providers including, but not limited to, travel agencies, hotel booking websites (ie.TripAdvisor.com or Experian), and internet search engines.
- It is subject to voluntary rental-pooling, revenue, profit or commission sharing agreements with the HOA or management company, or similar agreements that restrict the unit owner’s ability to occupy the unit such as blackout dates and occupancy limits to assure an inventory of units for rent on a frequent basis.
Why is the interest rate so much higher for a condotel?
Interest is primarily a function of risk. Condotels have higher risk profiles than single family homes or regular condos and, therefore, have higher interest rates. The main risk factors associated with condotels are:
- Fannie Mae and Freddie Mac will not buy these loans, which puts the risk of default on the lender.
- High Cost – Condotels typically charge higher than normal HOA dues and have other costs that raise the breakeven point for investors
- Marketability – If, unfortunately, the bank needs to foreclose on a condotel unit, it is not as marketable as a 3 bedroom 2 bath home because not everybody is in the market for one of these properties, Therefore, it is not as easy for the lender to get their money back by selling the property in a timely manner.
Can I take cash out of equity in my condotel unit(s)?
What are the terms of these loans?
Condotel loans come in all shapes and sizes. These include:
- 30 Year Fixed
- Adjustable Rate Mortgages
- Full doc, Bank Statement, or DSCR
Condotel Mortgage Expertise
We help simplify the condotel loan process & get you the lowest down payment.
About Hurst Lending
Hurst Lending has been helping Texans buy, sell, and refinance their homes since 2006. Our team specializes in solving common roadblocks — like buying before selling, winning bidding wars, or getting financing for homes that need a little work.
We offer unique short-term lending solutions like Domination Loans™ alongside a full suite of loan products: conventional, VA, FHA, cash-out, investor loans, and construction financing.
Whether you're a first-time buyer, an experienced investor, or somewhere in between, we’re here to make financing faster, simpler, and tailored to you.
