Condotels

Condotels are structured as condominium projects, with individual unit owners. The difference is that unit owners can arrange short-term rentals of their units to paying guests, which is further accommodated by full-service staff and amenities such as a check-in desk, housekeeping, and concierge services.

Condotel is a mixed term that combines “condominium” and “hotel.” A condotel, or condo-hotel, is a unique style of property ownership that operates as both a residence and a rental unit. Each condotel is typically part of a large-scale property that operates similar to a hotel, including onsite staff, hotel-style amenities, and resort features.

Condotel owners typically hold a standard mortgage and use their property several weeks a year as a vacation spot or second residence. When it’s not in use, owners can rent their unit. Since condotels are designed to be rented, they’re often located in tourist spots.

Owning a condotel has similar benefits to other types of homeownership, with the added benefit that condotels are designed to be rented out much of the year. With hotel-style amenities and onsite staff, the process of renting and maintaining the condotel is relatively effortless for the owner.

The number of mortgage lenders who finance condotels is limited. Condotels, by definition, are considered non-standard mortgages, and most condotel properties and buildings do not meet the loan requirements of Freddie Mac or Fannie Mae.

For this reason, some borrowers have the impression that financing a condotel loan will be difficult. But many niche lenders still offer loans for qualified borrowers.

To apply for a condotel loan, you’ll need to apply with Rodrigo Ballon at CrossCountry Mortgage. Doing your own research can be time-consuming (and each lender will pull your credit report, which could impact your credit score).

The smart move is to work with an experienced mortgage broker. If you’re ready to apply for a condotel loan, your mortgage advisor can make sure you get the best loan terms at the lowest rate possible.

A qualified mortgage advisor can submit your application to the right lenders so that your condotel mortgage gets approved and fits your financial goals.