Condotel · Hotel-Condo Purchase
Condotel Loan Calculator
Quick answer: A condotel loan payment is principal and interest on the price minus your down payment, plus property tax, insurance and the condo-hotel's fees. Fannie Mae's guidelines treat projects that operate like hotels as ineligible, so condotel units are usually financed with non-QM or portfolio loans and the down payment and rate come from your lender's term sheet. Enter them with your projected rental-program income to see cash to close, net monthly cost and how much of the payment the rent covers.
Built by Jim Blackburn · NMLS #1072866 · $500M+ closed · 7× Scotsman Guide Top Producer
Enter the down payment and interest rate from your term sheet and the management split from the rental program agreement to see every result. Price, fees, taxes, insurance, rent and closing costs start with example amounts; replace them with yours.
The condotel unit and loan
Down payment on a condotel unit varies by lender, so use the percentage on your term sheet. Closing costs: lender, title and prepaid charges from your Loan Estimate or term sheet.
Monthly ownership costs
Hotel rental program
Gross rental income is what the hotel operator projects or reports for your unit before its share. The split is the percentage the operator keeps under the rental program agreement; include any other program charges it deducts. Enter 0 for rent if you will not use the program.
Enter your down payment and interest rate
Estimates only — not a commitment to lend or a Loan Estimate. Jim Blackburn, NMLS #1072866.
How This Condotel Loan Calculator Works
The loan amount is the purchase price minus your down payment. Monthly principal and interest is the standard amortizing payment on that loan at the rate and term you enter. Add one-twelfth of the yearly property tax and insurance plus the monthly HOA and condo-hotel fees and you have PITIA, the full monthly housing cost. Net rental income is the gross the hotel operator brings in for your unit minus the operator's split. Subtract it from PITIA to get what you'd cover yourself, and divide it by PITIA to get the coverage ratio.
Example: $4,200 a month in gross rental income with a 40% operator split leaves $2,520 net. If PITIA is $3,600, coverage is 2,520 ÷ 3,600 = 0.70×, and you'd cover about $1,080 a month yourself before vacancy and repairs.
Why Condotel Financing Comes From a Term Sheet
Fannie Mae's Selling Guide lists several kinds of condo projects as ineligible, and condotels tend to fit them: projects where the association is licensed as a hotel or resort, where owners must put their unit into a rental pool, where owners can't occupy the unit during parts of the year, or where the project offers hotel-type services such as registration and daily cleaning. A unit in that kind of building usually can't be sold to Fannie Mae, so lenders who finance condotels keep the loans or sell them privately and set their own down payment, rate, reserves and maximum loan. That's why this calculator asks for the down payment and rate instead of assuming them.
How the Hotel Rental Program Changes the Math
Most condotel owners rent through the hotel operator's program. The operator books guests, cleans and maintains the unit and keeps a share of the room revenue. The agreement spells out that split, any charges deducted before you're paid (reservations, linens, furnishings reserves and the like) and how many nights you can use the unit yourself. Read it before you trust any income number, and enter the owner's net share here. If the operator can show the unit's actual rental history, use it instead of a projection.
What the Rent Coverage Ratio Tells You
Some condotel lenders underwrite the loan on the unit's rental income rather than your personal income, similar to a DSCR loan. The ratio here is net rental income divided by PITIA. At 1.00×, net rent pays the whole monthly housing cost; below 1.00×, you're making up the difference. Each lender sets its own minimum and decides whether it counts gross or net rent and whether it uses the operator's history or an appraiser's estimate, so ask how your lender calculates it.
Frequently Asked Questions
What is a condotel loan for a purchase?
A condotel loan is a mortgage on a unit in a condo-hotel, a building that runs like a hotel with a front desk, housekeeping and a rental program, while each unit is individually owned. Because these projects generally don't meet Fannie Mae and Freddie Mac condo standards, a condotel purchase is usually financed with a non-QM or portfolio loan whose terms are set by the lender.
How much down payment does a condotel loan purchase require?
It varies by lender, by the project and by your file, so there isn't one market figure to rely on. Ask the lender for a term sheet that states the down payment, rate, reserves and maximum loan for that specific building, then enter the down payment here to see your loan amount and cash to close.
Can hotel rental-program income help me qualify for a condotel loan purchase?
With some lenders, yes. Some underwrite on the unit's rental income, similar to a DSCR loan, while others qualify you on personal income and treat the rent as secondary. Ask whether they use gross or net income after the operator's split, and whether they need the operator's rental history for the unit.
How do I calculate DSCR on a condotel loan purchase?
Divide the unit's monthly net rental income by its full monthly housing cost: principal, interest, property tax, insurance and HOA or condo-hotel fees. For example, $2,520 in net rent divided by a $3,600 payment is 0.70. Lenders set their own minimum ratio and their own method, so confirm both on your term sheet.
Why can't I use a conventional loan to purchase a condotel?
Fannie Mae's Selling Guide lists projects that operate as hotels as ineligible: for example, where the association is licensed as a hotel or resort, owners must join a rental pool, owners can't occupy the unit during parts of the year, or the project offers hotel-type services such as registration and daily cleaning. A condotel unit usually falls into at least one of those categories.
What monthly costs come with a condotel loan purchase?
Plan for principal and interest, property tax, a condo unit (HO-6) insurance policy and the association or condo-hotel fees, which can cover hotel operations and shared amenities. Rental-program charges are usually taken out of your rental revenue, so they show up in the management split rather than in your housing payment.
Where do I find the interest rate for a condotel loan purchase?
On the term sheet or Loan Estimate from the lender. This page doesn't publish rates, because condotel pricing varies by lender, project, down payment and credit and changes often. Enter the rate from your own offer to see the payment.
Want Us to Run Numbers on a Specific Condotel?
Tell us the building and the unit and we'll look at financing options for that project and the rental program details lenders ask about.
- Only 2 minutes to complete
- No credit score impact
Related Condotel Tools and Guides
Important Disclaimer
This calculator estimates a condotel purchase payment, cash to close, net cost after rental income and a rent coverage ratio using the numbers you enter. It is not a Loan Estimate, a rate quote, a loan approval or a commitment to lend. Down payment, interest rate, reserves and the way rental income is counted are set by each lender and vary; use the figures on your own term sheet. Rental income is a projection, not a guarantee, and does not account for vacancy, repairs or other operating costs. Project-eligibility description reflects the Fannie Mae Selling Guide, B4-2.1-03 Ineligible Projects (version dated 08/05/2026), reviewed October 30, 2026. All borrowers must qualify based on lender and property guidelines. Jim Blackburn, NMLS #1072866. Equal Housing Opportunity.