There are three different types of condo classes in Hawaii: condo-tel, non-warrantable, and warrantable. How the condo is classified has a direct effect on financing options and down payment requirements. A condo-tel is a condominium unit that is operated and managed like a hotel. In regards to financing, any vacation rental that has front-desk operations on-site is referred to as a condo-tel. A non-warrantable condo does not meet the eligibility requirements set by government-sponsored Fannie Mae and Freddie Mac. These eligibility criteria are established to determine whether a condo project can be approved for conventional financing. A warrantable condo meets specific criteria set by mortgage lenders, making it eligible for conventional financing. The term warrantable is often used by lenders and loan agencies to describe condos that meet certain standards, making them less risky for lenders to provide loans for.