How Condo-Hotel Loans Work In Teton Village

Eyeing a slope-side condo-hotel at Jackson Hole and wondering how the financing really works? You are not alone. Condotel loans look familiar on the surface, but lenders underwrite them very differently from standard condos. In a few minutes, you will learn what to expect in Teton Village, which loan types are common, and how to prepare a clean, confident offer. Let’s dive in.

What a condo-hotel is

A condo-hotel is a condominium you own that also participates in a centrally managed short-term rental program. There is usually a front desk, reservations, housekeeping, and hotel-style amenities. Your management agreement sets the revenue split, owner use rules, and assessment obligations.

Lenders treat these projects as a hybrid of residential and hotel operations. Income varies by season, common areas are run like a hotel, and the HOA and management agreements are more complex than a typical condo.

How rental programs work

Most programs use centralized marketing and reservations. Your unit may join a rental pool, with revenue distributed after management fees. Owner stays can be limited by blackout dates or capped weeks, and those limits can affect loan classification and qualifying.

Why lenders view them differently

Short-term rentals, commercial components on site, and hotel-style operations add risk in a lender’s model. Many condo-hotels are considered non-warrantable by agencies, which narrows loan options and can push buyers toward portfolio or jumbo financing.

Condotel vs standard condo loans

Loan options you will see

Portfolio and jumbo loans

Local banks and credit unions that keep loans on their books are common players. Many Teton Village prices exceed conforming limits, so jumbo and portfolio loans are frequent choices.

Agency loans and warrantability

Some lenders can approve specific projects under strict standards, but many condo-hotels are non-warrantable. Expect agency pathways to be limited compared to traditional condos.

FHA and VA programs

FHA and VA require project approvals that condo-hotels rarely meet due to short-term rental structures and commercial space. Do not count on FHA or VA unless you confirm project approval upfront.

Down payment, rates, and reserves

• Plan for 20–40% down, depending on your profile and the project.
• Rates are typically higher than primary or standard second-home loans because of project risk and jumbo or portfolio pricing.
• Lenders often require strong post-closing reserves and will examine HOA reserves for capital needs.
• High or variable assessments can reduce the loan amount or require a larger down payment.

Using rental income to qualify

Documentation lenders request

If you want rental income counted, be ready with two years of unit-level statements or tax returns. Some lenders may consider 12 months, but two years is preferred.

How income is counted

Underwriters may average rental income and apply vacancy or expense factors. Where owner use is restricted or income is pooled with significant fees, lenders may discount or even exclude that income from qualifying.

Project factors lenders review

HOA health and reserves

Expect requests for the HOA budget, reserve study, delinquency rates, and any special assessments. Completed and stabilized projects are easier to finance than those under developer control.

Commercial space and concentration

Lenders look at the percentage of commercial space on site and whether a single entity owns many units. Higher investor concentration raises perceived risk.

Insurance and legal items

Underwriters review the master insurance policy, deductibles, and coverage gaps. They also look for pending litigation affecting the HOA or developer and will want clarity on title and management agreements.

Teton Village specifics

Pricing and jumbo reality

Teton Village is a premium slope-side market, and many purchases are above conforming limits. That is why jumbo and portfolio loans are common here, even for well-qualified buyers.

Taxes and local rules

Short-term rentals are typically subject to lodging taxes and local fees. Confirm who collects and remits these taxes and verify the unit’s permitted uses under current county and town policies.

Seasonality and operators

Jackson Hole enjoys strong winter and summer seasons, but income can vary with weather and travel patterns. Lenders often model vacancy conservatively and will consider the track record of the resort operator or branded manager.

Your step-by-step plan

1. Start lender conversations early. Ask which Teton Village projects they finance and what down payment and reserve levels they require.
2. Request a conditional project review. A pre-qualification without condo-hotel document review has limited value.
3. Gather project documents. Budget, reserve study, master insurance summary, management agreement, HOA rules and bylaws, and any litigation disclosures.
4. Collect rental history. Aim for two years of owner statements or Schedule E if you plan to use rental income to qualify.
5. Build a conservative model. Assume seasonality, management fees, and possible assessment increases. Confirm you still qualify.
6. Set your timeline. Expect longer underwriting due to legal and project reviews, and align contract dates accordingly.

Smart questions to ask before you offer

• Is the rental pool mandatory and what are the owner use limits or blackout dates?
• Can the seller provide two years of rental statements or tax returns for the unit?
• What are current HOA dues, what do they include, and how often have they increased?
• Are there pending special assessments or any litigation?
• What is the master policy deductible and are there notable exclusions?
• Who is responsible for collecting and remitting lodging taxes?

Timeline and what to expect

Underwriting takes longer than a typical condo purchase because the lender will review the HOA, management agreement, insurance, and the project’s metrics. Appraisers also consider marketability compared with similar units. Strong borrower profiles and clean documentation help you move faster and may improve terms.

Bringing it all together

Financing a condo-hotel in Teton Village is absolutely achievable when you plan ahead. Expect higher down payments, more documents, and a deeper project review than a standard condo. With early lender alignment and the right contract strategy, you can enjoy owner time on the mountain while keeping your financing on track.

If you are weighing options around Jackson Hole Mountain Resort and want a quiet, data-driven approach to touring, timing, and offer strategy, connect with Graham Faupel Mendenhall & Associates. We combine long-standing local insight with measured guidance so you can move with confidence.

FAQs

What is a condo-hotel in Teton Village?

• It is a condo you own that participates in a centralized short-term rental program with hotel-style services, governed by a management agreement.

Are Fannie Mae or Freddie Mac loans available for condotels?

• Possibly, but many condo-hotels are non-warrantable; most buyers use portfolio or jumbo lenders after project review.

How much down payment should I expect for a Teton Village condotel?

• Plan for a higher down payment than standard second homes, commonly 20–40% down depending on lender and project risk.

Can rental income from the unit help me qualify for a loan?

• Often yes, but lenders require documented history and may count only a portion after vacancy and expense adjustments.

How long does a condo-hotel loan typically take to close?

• Expect a longer timeline than a standard condo due to expanded HOA, legal, and insurance reviews and a more detailed appraisal.

Are FHA or VA loans realistic for Teton Village condo-hotels?

• They are uncommon because most condo-hotel projects do not meet FHA or VA project approval requirements.