The Building Fails. You Don't.
When a condo project doesn't meet agency guidelines, conventional financing isn't available to anyone in that building, regardless of your credit, income, or qualifications. That's where we come in.
Condotel & non-warrantable condo loans
Condotel Loans 2026: Financing for Non-Warrantable Condos and Condotels
We help buyers and owners finance condotel and non-warrantable condo units that don't qualify for conventional agency loans, because it's the building that fails the guidelines, not you. Our network of Non-QM lenders offers programs built for these projects.
No obligation. No credit pull required to check eligibility.
Licensed mortgage broker · Answer Home Loans, Inc. NMLS #1729528
- Nationwide Lender Network
- Up-Front Project Review
- LLC & Entity Closings
- Licensed Broker · NMLS #1729528
Why portfolio financing exists
Your Building Didn't Pass. That Doesn't End the Deal.
Conventional agency financing disqualifies entire condo projects, not individual borrowers. Portfolio lenders in our network step in where Fannie Mae and Freddie Mac stop.
We Review the Project, Not Just You
We look at the condo project itself alongside your borrower profile before matching you with a lender, so a building agencies won't consider still gets a real review.
Built for Condotels, Resort Condos & More
From condo-hotel units in rental pools to resort buildings with high investor concentration, the lenders we work with offer programs built for deals conventional lenders automatically decline.
Project eligibility
It's the Building, Not You
A condo project becomes “non-warrantable” when it fails Fannie Mae or Freddie Mac eligibility guidelines. The reasons vary, but none of them are about your creditworthiness.
Condotel or Hotel-Style Operation
Front desk, daily housekeeping, short-term rental activity, or a rental management program tied to the building.
High Investor Concentration
A high share of non-owner-occupied or investor-owned units in the building relative to agency thresholds.
Ongoing HOA Litigation
Unresolved legal disputes involving the homeowners association can disqualify an otherwise desirable project.
High Commercial Space Ratio
When commercial space makes up too large a portion of the project, agencies may not approve any residential units in the building.
New Construction Pre-Sale Requirements
New developments that haven't yet reached agency pre-sale thresholds can't access conventional financing for any unit.
Insufficient HOA Reserves
Low HOA reserve funding or a high rate of dues delinquency among unit owners may push a project outside agency eligibility.
Side-by-side comparison
The Honest Difference
Portfolio financing opens doors that agency financing keeps shut, with clear trade-offs worth understanding.
Traditional route
Conventional Agency Financing
Strict Project Questionnaire
Any failed agency condo guideline disqualifies the entire building
Condotels Automatically Declined
Most non-warrantable buildings are ineligible, with no exceptions
No Flexibility for Strong Borrowers
Borrower strength doesn't offset the building's specific issue
Individual Borrowers Only
Closing in an LLC is generally not permitted under agency guidelines
Lower Rates, If the Building Qualifies
The rate doesn't matter if the building can't be financed
Built for these projects
Specialized route
Condotel & Non-Warrantable Condo Loans
Project Reviewed on Its Merits
Lenders apply their own guidelines, not agency condo questionnaires
Flexible Underwriting
Built around your building and your deal: condotels, resort condos, and more
Primary, Second Home, or Investment
Permitted use depends on the project and the program
Close in an LLC or Entity
Investment purchases can typically close in an entity name
Honest trade-off: expect a larger down payment and a rate above conventional financing, because these lenders finance buildings the agencies won't.
Who we work with
Built for Buyers the Agencies Turned Away
If your building is the problem, not your profile, you're exactly who this financing was designed for.
Condotel Buyers & Owners
Purchasing or refinancing a unit in a condo-hotel building with a front desk, rental pool, or hotel-style services, the type agencies automatically reject.
Resort & Vacation-Market Buyers
Buyers in high-tourism or resort destinations where buildings often carry hotel-like features or investor concentration that disqualifies them from agency programs.
Investors in High-Concentration Buildings
Buildings where investor-owned units exceed agency thresholds are non-warrantable by definition. Portfolio lenders can still evaluate the deal.
Buyers in Newer Construction Projects
New developments that haven't met agency pre-sale requirements can still be financed through portfolio programs while the building establishes its occupancy record.
Second-Home Buyers
Purchasing a getaway condo in a building that falls outside agency eligibility? Portfolio financing can be structured for second-home use, depending on the project.
Investors Closing in an LLC or Entity
For investment purchases, these loans can typically close in an LLC or other entity name, a structure agency financing generally does not permit.
The process
We Review the Building. We Review You.
Two parallel reviews, because getting to the closing table means evaluating both the project and the borrower with care.
- 1
We Review Your Condo Project
We look at the building: HOA financials, ownership concentration, rental pool structure, and the other factors lenders weigh for eligibility.
- 2
We Match a Program to the Deal
We match a lender program to both the building and your borrower profile, including rental income analysis when it applies.
- 3
Lender Approval and Closing
We coordinate the file through underwriting and closing, including entity closings for investment purchases in an LLC.
FAQ · Condotel and non-warrantable loans
Frequently Asked Questions About Condotel and Non-Warrantable Loans
Financing a condotel or non-warrantable property works differently than a standard mortgage. Here's what to expect.
What does "non-warrantable" mean?
"Non-warrantable" means the condo project itself doesn't meet Fannie Mae or Freddie Mac eligibility guidelines — so conventional agency financing isn't available for any unit in the building. It's a building-level designation, not a borrower-level one. A unit can be non-warrantable even if the buyer has perfect credit and strong income.
Is a condotel always non-warrantable?
Almost always. The hotel-style operation and rental-pool structure common to condotels — front desks, housekeeping, short-term rental programs, and occupancy restrictions for owners — typically fall outside agency guidelines. This is why condotel units almost always require portfolio financing rather than a standard conventional condo loan.
Can I use a condotel unit as a second home or investment property?
Yes, depending on the building and the loan program. Permitted use — primary residence, second home, or investment property — varies by project and lender guidelines. It's evaluated as part of the project review. If short-term rental income is being used to help qualify, it's typically analyzed through a market or short-term rental income analysis rather than a standard lease.
Can I close the loan in my LLC's name?
Yes. For investment purchases, these loans can typically close in an LLC or other entity name. This is one of the key structural advantages of portfolio financing over conventional agency loans, which generally do not permit entity-name closings. You'll need to provide LLC or entity formation documents as part of the loan package.
Will I need a larger down payment for a non-warrantable condo or condotel?
Yes, typically. Because non-warrantable properties fall outside conventional Fannie Mae and Freddie Mac guidelines, lenders treat them as higher-risk and generally require a larger down payment than a standard condo purchase — with the exact requirement varying by lender and property type. Condotels typically require more than other non-warrantable condos because of their hotel-like rental use. Interest rates also tend to run somewhat higher than conventional financing, reflecting the same risk factors that make these properties non-warrantable in the first place.
Condotel and non-warrantable financing follows specialized underwriting outside standard agency guidelines, and terms vary significantly by lender and property type. Consult a licensed mortgage professional to review your options and confirm current requirements for your specific property.
Check My Condo's EligibilityWhat to have ready
Document Checklist
Getting started is straightforward. Here's what's typically needed to open your file.
Condo Project Details
HOA contact information, association budget, or master insurance policy if available. We'll help gather what's missing.
Purchase Contract or Mortgage Statement
Executed purchase agreement for new acquisitions, or your current mortgage statement if you're refinancing an existing unit.
Standard ID & Entity Documents
Government-issued ID for all borrowers. If closing in an LLC or entity name, include formation documents and operating agreement.
Additional documentation will be requested during underwriting. The above is what's helpful to have on hand when you reach out.
Example scenarios
Where Non-Warrantable Financing Fits
How these programs are typically used for buildings conventional lenders won't finance.
Resort Buyer Declined Over the Building
Illustrative example, not an actual client.
A buyer was turned down by several lenders because the oceanfront building operated as a condo-hotel. A portfolio lender could review the project under its own guidelines and finance the unit.
Timelines, rates, and terms vary by lender and borrower profile.
Rental-Pool Owner Refinancing a Condotel
Illustrative example, not an actual client.
An owner's unit sat in a hotel rental pool, so conventional refinancing was blocked at the building level. A non-warrantable program could look at the property's equity and rental history instead.
Timelines, rates, and terms vary by lender and borrower profile.
Investor Buying in a High-Investor Building
Illustrative example, not an actual client.
An investor wanted two units in a building where most units were investor-owned, and planned to close in an LLC. A portfolio program could accept both the entity closing and the building's ownership mix.
Timelines, rates, and terms vary by lender and borrower profile.
Start here
Check Your Condotel Building's Eligibility
Tell us about your condo project. We'll review it against lender guidelines and reach out to discuss your financing options. No obligation, no credit pull required to get started.
We evaluate the project, not just you
An up-front project review means non-warrantable buildings get a fair look.
Investment closings in an LLC welcome
Entity-name closings for investment purchases.
Condotels, resort condos, and more
Portfolio programs built for the deals agencies automatically decline.
Answer Home Loans, Inc. · NMLS #1729528 · DRE #02058505