Good morning, and thank you for your question.
Common non-warrantable properties include condotels, time shares, fractional ownership properties, and other projects which require owners to join an organization, such as a golf club.
Non-warrantable condo financing is unavailable via Fannie Mae and Freddie Mac, the FHA or the VA. To get a non-warrantable condo mortgage, you'll need to talk with a specialty lender.
Expect to make a larger down payment, 35 to 40 percent seems to be the norm. And loan amounts range between $100,000 and $1 million. Interest rates are also higher, at least .5 percent more, depending on your credit rating.
You might have better luck, assuming that you own a primary residence, with a home equity loan against your current home. If the condotel price is on the lower end, a personal loan could be your easiest and fastest cource of funding.
Condotel loans are hard to come by because they are risky for both lender and buyer. Condotels usually involve an investor purchasing a unit in a hotel building / complex, agreeing to let the hotel rent it to guests when the owner is not there. The sales pitch suggests the buyer will recoup investment costs and fees through the daily rental of the condo unit by the hotel, which, according to an article on the American Apartment Owners Association, "never happens."
So expect to have to qualify for financing on the assumption that you will be paying the mortgage, not your tenants.
I put out a couple of feelers this morning to lenders who do this sort of transaction, trying to see if they are licensed in Washington State. Will update this if anything comes through.
Thank you for writing and good luck.