High-rises, Condotels, and Townhomes
Condo buying across Colorado continues to grow, especially in city centers and resort communities where land is limited. Buyers often focus on views, location, and rental potential while assuming the financing will follow a familiar path. That assumption holds true for smaller projects, yet larger buildings introduce factors many buyers never encounter during a typical home purchase.
High-rise condos and condotels follow different operating models. Rental use plays a larger role, shared services are common, and investor activity tends to be higher. Once a lender reviews the project itself, these differences begin to matter, which explains why financing challenges appear later rather than at the offer stage.
Most condo loan issues stem from HOA project details rather than buyer qualifications. High investor concentration, short-term rentals, and mixed-use layouts often fall outside standard lending limits. Many lenders stop their review once these restrictions appear.
Condotels face stricter treatment. Nightly rental programs and on-site management remove eligibility under conventional condo rules. HOA financials also create issues when budgets or legal matters fall outside traditional condo guidelines. Although you may be denied by your bank or credit union, there is a solution.
Specialized non-QM condo loan programs avoid conventional full HOA project approval requirements.
→ Non-warrantable condo loans allows higher rental to owner occupancy ratios.
→ Condotel loans allow daily, weekly, and short-term rental operations without a second look.
Downtown Denver includes many high-rise condo buildings near Union Station and Lower Downtown where rental activity is common.
Mountain areas such as Breckenridge, Steamboat Springs, and Winter Park depend heavily on short-term rental condos. Colorado Springs continues to add residential units within retail corridors. Each market benefits from condo financing designed for how these properties function.
Interest rates for condominiums depend on credit score, down payment size, property type, and project warrantability.
Buyers making a strong down payment typically receive better pricing while non-warrantable loans carry modest rate adjustments due to increased risk. Working with a lender familiar with Colorado’s condo market ensures accurate quotes from the beginning.
Some of the most desirable Colorado condos fall under the non-warrantable category. These are often high-rise buildings or resort properties that don't meet agency approval guidelines.
Common examples include projects still under construction, HOAs that do not reserve 10-percent of their income for maintenance funds, or communities where less than half of the owners occupy their units as a primary or second home. Major banks may decline these loans, yet boutique lenders in Colorado often approve them when financials are stable and insurance coverage is adequate.
Deal breakers include unresolved structural repairs or pending legal action against the HOA. Outside of those, our team frequently closes loans that other lenders view as too specialized or complex.
These properties are most common in mountain resort towns such as Aspen, Vail, Telluride, and Steamboat Springs. They usually offer luxury onsite amenities and hotel-type check-in service. Many Colorado lenders classify condotels differently due to shared management or required rental contracts, but financing is available.
Condotel Property Requirements: ✓ Minimum 500 sq. feet (no exceptions) ✓ One separate bedroom required (no studio units) ✓ Full kitchen including stove, sink, and refrigerator ✓ Must allow year-round occupancy under HOA rules ✓ No dual-door layouts where two units share one entry ✓ Meets local rental and insurance coverage standards
Homeowners associations shape whether a condo qualifies for financing. Lenders analyze HOA reserves, insurance policies, budget consistency, and pending assessments. If less than 10 percent of annual revenue goes into reserves, lenders often classify the project as non-warrantable. Adequate coverage and healthy maintenance plans signal long-term stability and better loan terms.
Buyers help themselves by submitting HOA documentation early so the lender can review for compliance before appraisal or underwriting stages. Transparent communication can reduce the risk of late-stage delays.
A buyer selects an 800-square-foot one-bedroom condo in Denver’s Cherry Creek district. The HOA meets all budget and insurance guidelines but does not hold Fannie Mae approval due to a rental program. Through a non-warrantable portfolio loan requiring a 20-percent down payment, financing closes while maintaining competitive rates above conventional products.
We help buyers purchase or refinance condos throughout Denver, Boulder, and Colorado’s top resort destinations.
Every building’s financial condition, design, and HOA involvement can change loan outcomes. Whether it’s a new downtown tower, a non-warrantable community, or a short-term rental condotel, our Colorado lending team provides direct answers for fast approvals. Schedule a condo mortgage review today and find a program that supports your property goals.
We serve borrowers throughout the state of Colorado which includes these cities:
Disclosure: Minimum loan amount is $150,000 for residential. Loan programs are subject to change per lender at any time until the loan is approved and the rate is locked. Borrowers must be approved by underwriting. Not all applicants will qualify.