Condo Finance 101
Things you should know about Condo Finance
Condo finance can be difficult at times. Most condo financing programs will require the condo will be less than four floors and will have more than 50% of the condo units occupied by their owners and that the condo financing be less than the conforming limit, currently $417,000. If this describes your situation, you will find many options under the Loan Programs section. If you are considering an FHA loan for your condo financing, it will need to be on the FHA approved condo list. I have included the link to the FHA site. I have also included some additional information on FHA condo acceptance.
However, if the condo does not meet these standard criteria, we have several condo financing programs which will help. Condo financing programs are available for a high rise condo and for condos whose owner occupancy ratios are below 50%. These are commonly called a “non-warrantable” condo. Rates are generally 1/4 percent above the current market but we can almost always get your condo financing done. You will still be able to choose from fixed rate or ARMs and interest only options are readily available.
Program many not be available in all states (case by case). Programs and guidelines subject to change without notice.