Common challenges
A condo loan is approved on the building as well as the buyer. Low reserves, litigation or heavy investor ownership can stop a conventional loan late in the process.
Programs that fit
Condo Loans
A condo loan is a mortgage on a unit in a condominium project, and approval depends on the building as well as the buyer.
Conventional Loans
A conventional loan is a mortgage not insured by the government that follows Fannie Mae or Freddie Mac guidelines.
FHA Loans
An FHA loan is a government-insured mortgage that allows 3.5% down with a credit score of 580 or higher, or 10% down with a score from 500 to 579.
DSCR Loans
A DSCR loan is an investment-property mortgage that qualifies you on the property’s rental income divided by its monthly payment (the debt service coverage ratio).
Tips before you apply
- Request the HOA questionnaire and budget as soon as you are under contract.
- In Florida, ask for the latest milestone inspection and reserve study.
FAQ
What is the best mortgage for condo buyers?
It depends on your documentation and goal. The programs that most often fit are Condo Loans, Conventional Loans, FHA Loans, DSCR Loans.