Competitive Condo Financing Options
Purchasing a condo is a big financial step in your life, and you deserve to work with mortgage partners who care about you. We offer conventional loans and non-conventional loans to suit a broader range of clients looking to purchase a condo unit. We offer complimentary consultations, so you can explore your financing choices and get answers to any questions you have.
Conventional and Non-Conventional Condo Financing
Just like individual homes financing, condo mortgages come in all shapes and sizes. Two major divisions of condo financing are conventional and non-conventional loans.
Conventional condo loans are those that are funded and insured in full through private lenders without funding from the federal government.
Non-conventional condo financing describes mortgages that are insured through the federal government. Common non-conventional condo loans include VA loans (backed by the U.S. Department of Veterans Affairs) and FHA loans (backed by the Federal Housing Administration). FHA and VA loans have very low or non-existent down payment options, however there are very few approved condos in the state of Florida for government backed loans.
The Unique Stipulations of Condo Financing
Regardless of what type of condo financing you choose, there are a few basics to keep in mind.
The rates for conventional condo mortgages may be slightly higher because there is more risk to the lender when purchasing a condo. For primary residence condos, you can put down as little as 3% down, for second homes, 10% down. All investment condos require 25% down.
There are also a few unique additional requirements of condos. First, your condo property will need to be evaluated to ensure that the development is financially sound, since you will share certain common areas with others. Additionally, we will ensure that your condo or homeowners’ association undergoes regular financial review and dedicates funds from all owners’ dues to updated. We will take care of the condo questionnaire for you and make sure your property meets these guidelines. Sovereign Mortgage even has options for condo financing that do not meet the standard condo guidelines, however rates will be higher for these types of condos.
See What Rates You Could Secure for Condo Financing
Whether you are interested in conventional financing or non-conventional FHA or VA condo loans, we have the answers you need.