Thinking about a slopeside condo you can enjoy and rent when you are not in town? In Teton Village, many condos operate like hotels, which changes how lenders look at them. You want clarity on loan options, down payments, timelines, and the rules that affect rental income before you write an offer. This guide breaks it all down so you can plan your purchase with confidence. Let’s dive in.
What is a condotel
A condotel is a condominium in a property that runs with hotel-style services, such as a front desk, housekeeping, and a central reservation system. Owners often place their units in a short-term rental program when they are not using them. This hotel-style operation is the main reason condotels are financed differently than typical condos.
Why financing differs
Most hotel-style condo projects are treated as non-warrantable by conventional investors. That means many standard conforming loans are not available for these units. Industry reporting notes that projects with nightly rentals or hotel services are often ineligible for Fannie Mae or Freddie Mac backing, which limits traditional mortgage choices for buyers (why many condotels are non-warrantable).
Government-backed programs usually do not work either. FHA and VA condo guidelines typically exclude hotel-style projects and converted hotels from approval (FHA/VA condo program guidance).
Loan options to expect
Portfolio and non-QM lenders
When a project is non-warrantable, banks and specialty lenders use portfolio or non-QM loans. Expect more tailored underwriting, fewer 30-year fixed options, and more adjustable-rate or shorter-term loans. Down payment, reserves, and credit standards are usually tighter than for standard condos (condotel financing basics and norms).
Typical down payments and reserves
- Second home or part-time use: many lenders ask for 20 to 30 percent down, mid-600s to 700-plus credit scores, and significant cash reserves.
- Investment use with nightly rentals: down payments often start near 30 percent and can be higher. Lenders may qualify using rental history or a DSCR approach.
Terms vary by lender, so get quotes and documentation lists early (common ranges for condotel loans).
Local rules and taxes that shape income
Nightly rentals are permitted in designated resort areas of the county that include Teton Village. Teton County explains that short-term rentals are generally restricted outside these areas, so you should confirm a unit’s specific zoning and approval before assuming rental income (Teton County short-term rental overview).
Inside the Town of Jackson, a 2024 permitting program requires a Business License and a Basic Use Permit for any short-term rental, and rules differ inside the Town’s Lodging Overlay. While Teton Village is under county rules, many buyers look at nearby neighborhoods too, so it is smart to know the distinction (Town of Jackson short-term rental permits).
Taxes affect your net income. Local lodging and sales taxes must be collected on short stays and will reduce gross revenue. Teton County outlines how lodging tax funds are used and provides local context you can use when modeling cash flow (About lodging tax in Teton County).
What lenders review in a condotel
Lenders dig into project and unit details because operations resemble a hotel. Be ready to provide:
- HOA declaration, bylaws, and amendments, with any rental or owner-use rules. Lenders also look for solid reserves, low delinquencies, and the absence of major special assessments (how lenders view condo project finances).
- A completed condo questionnaire and up-to-date financials. This is a common underwriting requirement for non-warrantable projects and can add time to the process (what underwriters ask for on non-warrantable condos).
- Rental program agreements, showing revenue splits, fees, and owner-use policies. Mandatory rental pools receive extra scrutiny.
- Unit features. Some lenders prefer units with a full kitchen, minimum square footage, and independent access. Units that function like hotel rooms can be harder to finance (unit features that influence eligibility).
- Insurance details. Confirm master policy coverage and any special endorsements required by the operator or lender (condo insurance considerations for lenders).
Typical buyer scenarios in Teton Village
- You want a part-time base near the lifts. A local portfolio or non-QM loan is common. Plan for 20 to 30 percent down and one year of reserves, subject to lender review of HOA and rental documents (typical condotel terms and docs).
- You are focused on nightly-rental income. Expect higher down payments, DSCR or income-based underwriting, and requests for historical rental statements.
- You are paying cash. Many buyers in resort condotel markets choose cash to simplify the process and avoid higher rates or stricter terms (why cash is common on condotels).
Timeline and pitfalls to anticipate
Underwriting for non-warrantable projects often takes longer than a standard condo. Waiting on a completed condo questionnaire, current HOA financials, or rental program documents can delay commitment. Build in extra time and share documents with your lender early to avoid surprises (extra reviews for non-warrantable projects).
Your step-by-step plan
Confirm zoning and rental legality. Ask for written confirmation that the unit is in Teton Village’s designated lodging area and permitted for nightly rentals (Teton County STR overview).
Get prequalified with a condotel-friendly lender. Ask about down payment, reserves, rate options, and the full document list you will need.
Collect the right documents early. Request the condo questionnaire, HOA budget and reserve study, insurance declarations, litigation disclosures, and the rental management agreement with 12 to 24 months of revenue statements.
Model income conservatively. Subtract lodging and sales taxes, management fees, HOA dues, utilities, and reserve contributions. Use regional data to set realistic occupancy and average daily rate, not just peak-season figures (Wyoming economic and lodging indicators).
Plan your cash. Be ready for higher down payments and meaningful reserves, especially if you will rely on rental income.
Quick checklist
- Verify the unit’s permitted short-term rental status in writing.
- Obtain HOA docs, budget, reserve study, and litigation disclosures.
- Review the rental management agreement and recent revenue history.
- Confirm master insurance coverage and lender requirements.
- Compare portfolio and non-QM quotes, terms, and timelines.
- Build a conservative pro forma that includes taxes and fees.
Ready to talk through a specific building or unit in Teton Village, or to coordinate the documents your lender will need? Reach out to JH Living for concierge-level guidance from a local who knows the slopes, the zoning map, and the lending landscape. We can also help you steward the asset with integrated property management support once you own. Start a conversation with JH Living.
FAQs
Can I get a conforming mortgage on a Teton Village condotel?
- Many condotels are considered non-warrantable because of nightly rentals and hotel services, so standard Fannie Mae and Freddie Mac loans often are not available (industry overview of non-warrantable rules).
Do Teton County rules allow nightly rentals in Teton Village?
- Yes. Teton Village is within designated resort lodging areas where nightly rentals are permitted, but always confirm a specific unit’s legal status with the county (county STR guidance).
Are FHA or VA loans an option for condotels near Jackson Hole Mountain Resort?
- Typically no. FHA and VA condo programs generally exclude hotel-style projects and condotels from approval (FHA/VA condo policy basics).
What taxes should I factor into condotel rental income in Teton County?
- Expect state and local lodging and sales taxes on short stays, which reduce gross revenue. Review local guidance to estimate the impact (about Teton County lodging tax).
What documents will my lender ask for on a Teton Village condotel purchase?
- Plan for a condo questionnaire, HOA budget and reserve study, insurance declarations, litigation disclosures, and the rental program agreement with income history (common lender document requests).
