Condo-hotels (condotels) are one of the most misunderstood property types in Colorado real estate. If you're trying to finance a condotel and your lender says they can't help, they're not wrong — but there are programs that can.
What Is a Condotel?
A condotel is a condo unit within a project that operates with hotel-style features: a front desk, mandatory or optional rental pool, hotel branding, daily maid service, or short-term rental management by the project. Common examples in Colorado:
- Purgatory Village at Durango Mountain Resort
- Certain units at Steamboat Grand (Steamboat Springs)
- Some ski-in/ski-out projects in Vail, Beaver Creek, and Keystone
- Riverfront condo-hotel projects in Avon/Edwards
Why Conventional Lenders Can't Help
Fannie Mae, Freddie Mac, FHA, and VA all exclude condotel projects from their guidelines. When a lender says "we can't do this loan," it's because their products are agency-backed — not because you're an unqualified buyer.
Financing Options for Colorado Condotels
1. DSCR Loan (best for buyers who will rent the unit) • Qualifies on the property's rental income • No personal income documentation • Can close in LLC • 25–30% down, 660+ FICO • Available on DSCR-eligible condotel projects
2. Non-QM Portfolio Loan (best for buyers who will use personally) • Portfolio lender holds the loan in-house • Some lenders specifically accept condotel classification • 25–30% down, 660–680+ FICO • Rate premium of 0.5–1.0% vs. conventional
KEY: Not all DSCR/Non-QM lenders accept condotels. Lender selection is critical.
We Specialize in Colorado Condotel Financing
We've closed Purgatory Village and other Colorado condotel transactions. We know which lenders accept which projects and what documentation is required. Contact us before writing an offer on any condotel property.