🏨 What Is a Condotel?

A condotel, or condo-hotel, is a resort-style condominium that combines private ownership with hotel-like amenities such as front desk check-in, housekeeping, pools, and on-site restaurants. Owners can use their unit personally and also rent it short-term — often through the resort’s management program.

Because condotels operate more like hotels than traditional condos, they are considered non-warrantable properties, meaning they don’t qualify for conventional mortgage financing through Fannie Mae or Freddie Mac.

💰 Financing Options for Condotels in 2025

1. Non-QM (Non-Qualified Mortgage) Loans

These are the go-to solution for condotel buyers. Non-QM lenders offer greater flexibility than conventional mortgage providers, with custom underwriting based on assets, rental income, or other alternative criteria.

• Down Payment: Typically 25% for second homes, 30–40% for investment properties
• Minimum Credit Score: While many lenders prefer 680+, Edge Home Finance offers options down to 620
• Loan Structure: Adjustable-rate mortgages (ARMs) with 3/5/7-year fixed periods are common
• Reserves: One year of reserves is standard, and retirement assets often qualify

DSCR (Debt-Service Coverage Ratio) loans may also be available based on projected rental income, allowing for streamlined approval without verifying personal employment or income.

2. Specialized Lending with The Local Ledger

We partner with lenders that understand the unique financing challenges of condotel properties in Myrtle Beach. Through Edge Home Finance, we offer direct access to tailored loan programs that work for both investors and second-home buyers.

🏙️ Popular Condotel Communities in Myrtle Beach

Many oceanfront properties in Myrtle Beach fall under the condotel category. If you’re shopping in one of the following communities, expect to use a specialized mortgage product:

• Anderson Ocean Club: Full-service resort with valet parking, spa, and high rental demand
• Camelot by the Sea: High-rise condotel popular among investors due to rental performance
• Bay View Resort: Prime location on the Boardwalk, operates with centralized hotel services
• Ocean Reef Resort: Family-friendly amenities and onsite management define this condotel
• The Palace Resort: Investment-heavy property with dining and front-desk check-in
• Landmark Resort: Known for its water park and multiple tower layouts
• Caribbean Resort & Villas: Offers full hospitality amenities and strong short-term rental history

📌 Important Lending Considerations

• Property Classification: Ensure the building is properly flagged as a condotel by your lender
• HOA Health: Lenders evaluate reserve funds, delinquency rates, and litigation status
• Rental Income: Be ready to show past rental history or market projections for DSCR loan qualification
• Insurance: You’ll need both an HO-6 unit policy and confirmation of adequate HOA master insurance

📝 How to Secure Financing for a Condotel

1. Get Pre-Qualified: Work with a lender that understands condotels — The Local Ledger and Edge Home Finance have experience navigating this market
2. Choose Your Property: Not all buildings are treated equally, so confirm eligibility upfront
3. Provide Documentation: Income, assets, HOA docs, and property rental data may be required
4. Close the Deal: Condotel loans typically close within 30 days when working with the right team

🎯 Why Work with The Local Ledger?

We specialize in coastal markets and condotel lending — providing buyers and investors with smart strategies for navigating Myrtle Beach real estate. Backed by Edge Home Finance, we offer exclusive access to flexible non-QM and DSCR loan options that most banks can’t match.

Ready to make your beachfront investment a reality?

📲 Start Your Condotel Loan Application

Or call us at 843-640-1820 to speak with a local expert.

🔎 FAQ: Condotel Loans in Myrtle Beach

🔗 Additional Resources

📘 Learn more about DSCR loan options for investors

🌴 Explore our Myrtle Beach insights and buyer resources