Yes — getting a mortgage for a condo can be harder than for a single-family home. 🏢 Here’s why:
🔍 1. Lender Risk
Lenders see condos as higher risk because you’re not just buying your unit — you’re also tied to the financial health of the entire building and homeowners association (HOA).
💰 2. HOA and Building Approval
Your lender must review the HOA’s budget, insurance, and ownership mix. If too many units are rented out, or if the HOA has financial issues, the mortgage could be denied.
🏦 3. Loan Type Matters
- Conventional loans (Fannie Mae/Freddie Mac): Require the condo project to be on their approved list or meet specific criteria.
- FHA loans: Only available if the condo project is FHA-approved (and not all are).
📉 4. Down Payment and Rates
Some lenders might require a larger down payment (10–20%) or charge a slightly higher interest rate for condos compared to single-family homes.
Related: Do you pay monthly for a condo?
✅ Tip
Before you fall in love with a condo, ask your lender if the building is approved — it can save you time and stress later.