08/24/2026
A Summit County condo can become nearly impossible to finance because of a form somebody filled out wrong years ago.
It's called a condotel designation. When a building gets flagged as one by Fannie Mae or Freddie Mac, conventional lending dries up and a seller's buyer pool suddenly shrinks to cash only.
There are two ways it happens.
Sometimes lending guidelines genuinely changed between the time the owner bought and the time they went to sell. Nobody's fault.
Far more often, somebody along the way mistakenly identified characteristics that made the building look like a condotel and submitted it that way. That error can sit there for years before anyone notices usually at the worst possible moment, when a buyer's financing falls through.
Here's what most owners don't know: the second one can be corrected.
If you own in a building that's been flagged, or you're under contract right now and the loan just died, find out which of the two you're dealing with before you drop your price.
Know someone who owns a condo in Keystone, Dillon or Frisco? Worth sending this to them.
