Condo Financing
Competitive rates for condos, townhomes, and co-ops. FHA, VA, conventional, and jumbo options available.
GET PRE-APPROVEDCondo & Townhome Financing
Financing a condominium or townhome involves unique considerations compared to single-family homes. Lenders must evaluate not only your financial qualifications but also the condo project itself—including the homeowners association (HOA) financial health, insurance coverage, and project approval status. Understanding these requirements is key to a smooth condo purchase.
With access to 260+ lenders, we specialize in condo financing across all project types—from high-rise urban condos to suburban townhomes. We'll help you navigate condo approval requirements, HOA reviews, and find the best loan program for your situation, whether you're buying your first condo or investing in rental property.
Benefits of Condo Ownership
Lower Maintenance
HOA handles exterior maintenance, landscaping, and common areas. No yard work or roof repairs.
Amenities Included
Access to pools, fitness centers, clubhouses, and other amenities without individual ownership costs.
Community Living
Built-in community with neighbors, social events, and shared spaces for an active lifestyle.
Security Features
Gated access, security systems, and close proximity to neighbors provide added peace of mind.
Affordability
Condos typically cost less than single-family homes in the same area, making homeownership accessible.
Prime Locations
Condos often located in desirable urban areas, close to work, dining, and entertainment.
Condo Loan Options
Conventional Condo Loans
Fannie Mae and Freddie Mac offer conventional financing for condos in approved projects. These loans offer competitive rates and terms for borrowers with good credit. The condo project must be on Fannie Mae or Freddie Mac's approved list or meet their guidelines.
Down Payment:
3% - 20%
Credit Score:
620+
Loan Limits:
Up to $766,550
FHA Condo Loans
FHA loans allow low down payments (3.5%) and flexible credit requirements for FHA-approved condo projects. Ideal for first-time buyers or those with limited down payment funds. The condo project must be on FHA's approved list.
Down Payment:
3.5%
Credit Score:
580+
Loan Limits:
Varies by area
VA Condo Loans
Veterans and active military can purchase condos with no down payment using VA loans. The condo project must be VA-approved. Offers competitive rates and no monthly mortgage insurance.
Down Payment:
0%
Credit Score:
No minimum
Funding Fee:
2.15% - 3.3%
Jumbo Condo Loans
For luxury condos exceeding conventional loan limits. Jumbo loans offer financing up to $3 million+ for high-value properties. Require larger down payments and excellent credit but offer competitive rates for qualified borrowers.
Down Payment:
10% - 20%
Credit Score:
700+
Loan Amounts:
$766,551+
Condo Project Requirements
Lenders evaluate the condo project itself to ensure it meets their guidelines. Here's what they look for:
HOA Financial Health
- Adequate reserve funds (typically 10%+ of budget)
- Low delinquency rate (under 15% of owners behind on dues)
- No pending litigation against HOA
- Current on property taxes and insurance
Insurance Coverage
- Adequate hazard insurance coverage
- Fidelity bond coverage for HOA
- Flood insurance if in flood zone
- Liability insurance for common areas
Owner-Occupancy Ratio
- At least 50% owner-occupied (conventional)
- Maximum 50% investor-owned units
- No single entity owns more than 10% of units
- Project at least 90% sold (new construction)
Project Approval Status
- Fannie Mae/Freddie Mac approved (conventional)
- FHA approved (FHA loans)
- VA approved (VA loans)
- Limited review or spot approval available
Warrantable vs. Non-Warrantable Condos
Warrantable Condos
Warrantable condos meet Fannie Mae/Freddie Mac guidelines and qualify for conventional financing with the best rates and terms. These projects have stable HOAs, adequate reserves, and meet all lender requirements.
Best Rates & Terms | Widest Lender Selection | Easiest Approval
Non-Warrantable Condos
Non-warrantable condos don't meet conventional guidelines due to factors like high investor concentration, litigation, or incomplete construction. These require portfolio or non-QM lenders with higher rates and down payments.
Higher Rates | Larger Down Payment | Specialized Lenders Required
Common Non-Warrantable Scenarios:
- •More than 50% of units are rentals or investor-owned
- •Single entity owns more than 10% of units
- •HOA involved in litigation
- •More than 15% of owners delinquent on HOA dues
- •Condo-hotel or short-term rental restrictions
- •Commercial space exceeds 25% of total square footage
Borrower Requirements
Credit & Income
- Credit score varies by loan type (580-700+)
- Debt-to-income ratio below 43-50%
- Stable employment (2+ years same field)
- Income verification (W-2s, pay stubs, tax returns)
Down Payment & Reserves
- Down payment: 0-20% depending on loan type
- Cash reserves: 2-6 months PITI recommended
- Gift funds allowed for down payment (most loans)
- Closing costs: 2-5% of purchase price
Ready to Finance Your Condo?
Get pre-approved today and we'll help you navigate condo project approval, HOA reviews, and find the best loan from 260+ lenders.