· Ronald Cepeda
Most banks run from condo hotels. We run toward them.
A condo hotel — or 'condotel' — blends condominium ownership with hotel-style amenities and rentals. Think of a beachfront tower where you own your unit but the building offers a front desk, housekeeping, room rentals, and on-site management. In Florida, these properties are everywhere, and they're a favorite for investors and second-home buyers alike.
Here's the catch: most traditional lenders won't touch them. Fannie Mae and Freddie Mac generally consider condotels non-warrantable, which means conventional financing is off the table. Buyers who don't know this often waste weeks with a bank only to be told no at the worst possible moment.
That's where specialized Non-QM and portfolio lending comes in. Condotel loans evaluate the unit, the project, and your profile through a different lens — one built for these properties. Expect a larger down payment (often 25% or more) and a slightly higher rate, but the financing absolutely exists when you work with the right partner.
Lenders look closely at the building: the percentage of units owned by investors versus owner-occupants, the strength of the HOA, the rental program structure, and whether the property functions more like a hotel or more like a residence. Each of these factors shapes which lender is the right fit.
Because condotel guidelines vary so widely from lender to lender, this is exactly the kind of loan where a broker earns their keep. Sending your file to the wrong lender means a denial; sending it to the right one means a smooth close. We know who does what.
If you're eyeing a condo hotel unit on the Florida coast, don't let financing intimidate you. This is niche lending, and niche lending is what we do. Let's talk through your specific building and get you a real answer.