Condo-hotel properties featuring on-site check-in desks, daily maid service, and shared rental pools are classified as 'Non-Warrantable' by Fannie Mae and Freddie Mac, requiring specialized portfolio financing.
1. Warrantable vs. Non-Warrantable Condo Criteria
| Underwriting Benchmark | Warrantable Conventional Condo | Non-Warrantable Condo-Hotel (Strip) |
|---|---|---|
| Short-Term / Transient Rental Pool | Strictly prohibited (>30-day lease minimums) | Permitted with active front desk check-in |
| Commercial Space Ratio | Maximum 35% of total building square footage | Can exceed 50% (casinos, restaurants, spas) |
| HOA Reserve Funding | Minimum 10% of annual budget allocated to reserves | Requires full structural reserve study review |
| Single Entity Concentration | No single owner can hold > 20% of units | Portfolio lenders allow higher investor concentrations |