Back How Does A Condo Mortgage Work?
March 27, 2021
A condo mortgage is a home loan for a condominium. What’s different about a condo mortgage is the underwriting process. Not only do the underwriters review the financial health of the borrowers, but the condo association as well.
What is a condo mortgage?
FHA Condominium Loans are specifically geared toward those who purchase housing units in a condominium building. Condominium ownership, in which separate owners of individual units jointly own the development’s common areas and facilities, is for some a very popular alternative to homeownership.
Multiple Product Options
- No more than 50% of the units can be investor-owned / rentals.
- No more than 50% of the property can be used as commercial space
- No more than 15% of units can be delinquent in their HOA assessments for more than 60 days
- No more than 50% concentration of FHA Loans within the community
- Properties with more than 20 units, no single investor, entity, or related party may own more than 10% of the units within the project.
- For properties with 20 units or less, no individual owner, entity, or related party may own more than one unit.
- Reserve requirements may apply
- Insurance requirements may apply
Looking for FHA Approved condos in your area? Use this awesome search tool HERE Here you can check to see if the property you are interested in is approved for an FHA Condo loan
Currently renting and wondering how much home you could buy instead? Check out our interactive calculator below:
