Possibly, depending on the building and the lender. Fannie Mae treats hotel style condo projects as ineligible, which is one reason condotels often need other financing. A DSCR program has its own rules. Send the project documents, rental pool or management agreement and fee schedule so the lender can say yes or no.
Fannie Mae's list of ineligible project characteristics includes a project whose HOA is licensed as a hotel, motel, resort or hospitality entity, and a project whose documents require owners to share rental profits with the HOA, a management company or a resort or hotel rental company.
It also includes projects professionally managed by a hotel or resort management company that facilitates short term rentals for owners, projects with hotel, motel or resort in the name (with exceptions for historical use), projects marketed as a hotel, resort or investment opportunity, and projects that have a hotel or resort rating.
These are agency rules, not DSCR rules. A private DSCR program decides for itself, so the practical step is to get the building's documents in front of the lender before you commit.
Condotel features that raise a flag
| Feature | Why it matters |
|---|---|
| HOA licensed as a hotel or resort | Listed as an ineligible project characteristic by Fannie Mae |
| Owners must share rental profits | Same |
| Hotel or resort management that books short term stays | Same |
| Hotel, motel or resort in the name | Same, with a historical use exception |
| Marketed as a hotel or investment | Same |
From Fannie Mae's B4-2.1-03. A private DSCR program may differ.
What to do
- Get the legal project name, the declaration and the rental or management agreement.
- Get the fee schedule, including resort and club charges.
- Ask the lender which of these features it accepts.
- Ask an attorney to explain who controls your unit's use and income.
Sources
- Fannie Mae Selling Guide, B4-2.1-03, Ineligible Projects (08/05/2026). Ineligible project characteristics including hotel and resort operations. Source type: Official. Checked October 17, 2026.