Loans for Condo's

Loans for Condo’s

Just some vital information for anyone planning on purchasing a condo, and what you can expect in a loan.

You can purchase a condo and with either of these popular loan types: conventional loan or FHA loan.

Conventional

• The minimum down payment for a condo loan is now 15 - 20% (depending on the lender)

• PMI (private mortgage insurance) is added to your payment unless you put 20% down or more

• Condo complexes must be approved by Fannie Mae

• Condos with less than 20% down will need to meet certain HOA restrictions, the most common being the owner occupancy rate and the delinquency rate within the complex
  

FHA

• The minimum down payment for a condo loan is 3.5%

• PMI – same as above

• Condo complexes must be approved by HUD

• Condos with less than 20% down – same as above

• The FHA upfront fee can be paid as part of closing costs or added to the loan amount

• Condos will also need to meet certain HOA restrictions
  

The first hurdle would be doing the research upfront to find out if the condo is on Fannie Mae's approved condo list or FHA's approved list. It's a loan requirement.

Buyers, it's good to know all your options before settling on a loan for a condo.