Current condo mortgage rates

Written by

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money.

How are condo mortgage rates different?
Types of condo mortgages
How to qualify for a condo mortgage
How to get a condo mortgage
Can you refinance a condo mortgage?

About our Mortgage Rate Tables: The above mortgage loan information is provided to, or obtained by, Bankrate. Some lenders provide their mortgage loan terms to Bankrate for advertising purposes and Bankrate receives compensation from those advertisers (our "Advertisers"). Other lenders' terms are gathered by Bankrate through its own research of available mortgage loan terms and that information is displayed in our rate table for applicable criteria. In the above table, an Advertiser listing can be identified and distinguished from other listings because it includes a "Next" button that can be used to click-through to the Advertiser's own website or a phone number for the Advertiser.

Availability of Advertised Terms: Each Advertiser is responsible for the accuracy and availability of its own advertised terms. Bankrate cannot guaranty the accuracy or availability of any loan term shown above. However, Bankrate attempts to verify the accuracy and availability of the advertised terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. Click here for rate criteria by loan product.

Loan Terms for Bankrate.com Customers: Advertisers may have different loan terms on their own website from those advertised through Bankrate.com. To receive the Bankrate.com rate, you must identify yourself to the Advertiser as a Bankrate.com customer. This will typically be done by phone so you should look for the Advertisers phone number when you click-through to their website. In addition, credit unions may require membership.

Loans Above $548,250 May Have Different Loan Terms: If you are seeking a loan for more than $548,250, lenders in certain locations may be able to provide terms that are different from those shown in the table above. You should confirm your terms with the lender for your requested loan amount.

Taxes and Insurance Excluded from Loan Terms: The loan terms (APR and Payment examples) shown above do not include amounts for taxes or insurance premiums. Your monthly payment amount will be greater if taxes and insurance premiums are included.

Consumer Satisfaction: If you have used Bankrate.com and have not received the advertised loan terms or otherwise been dissatisfied with your experience with any Advertiser, we want to hear from you. Please click here to provide your comments to Bankrate Quality Control.

Whether you’re looking to ease into the responsibilities of homeownership, downsize or buy a rental property, a condominium could be a fit. A condo is an individual unit in a community of other units, typically managed by a homeowners association, or HOA, and can come with access to common spaces like a gym or pool. As with buying a single-family home, buying a condo can be a worthwhile investment, but there are key differences between the two.

Condo mortgages: How are they different?

There are some differences in the process of getting a mortgage for a single-family home versus getting a mortgage for a condo.

Condo mortgages call for additional documentation, because lenders screen both the borrower (you) and the condo project. The lender looks at how many units the community has, for instance, the proportion of owner-occupied to tenant-occupied, as well as its financial footing and insurance coverage. Lenders also consider whether other owners in the community are current with their dues, and how many units are owned by a single entity. All of these factors have to check out in order for the lender to approve the loan.

These extra steps can also cost you more at closing, both in terms of time — it can take longer for the lender to do a thorough assessment — and money, since there could be fees to obtain the documents.

Getting financing for a condo might also require a higher down payment, depending on the type of loan you get. This might be easier to come by, however, since condos are generally less expensive than single-family homes.

Condo mortgage rates vs. single-family home mortgage rates

Condo mortgages tend to have slightly higher interest rates compared to a loan for a single-family home, because lenders need to compensate for the additional risk of financing property in an association.

Types of condo mortgages

If you’re planning to buy a condo to live in, you can finance it in the same way you’d finance a single-family home. Your options include:

Conventional loans – 3 percent or 5 percent down, with a 620 minimum credit score
FHA loans – 3.5 percent down with a 580 minimum credit score, or 10 percent down with a 500 minimum credit score; must be an FHA-approved condo
VA loans – No minimum down payment or credit score; must be an eligible service member or veteran; must be a VA-approved condo
USDA loans – No minimum down payment or credit score; must be in an eligible location

How to qualify for a condo mortgage

In addition to meeting down payment and credit requirements, you’ll also need to meet debt-to-income (DTI) ratio requirements, which vary based on loan. For a conventional condo mortgage, lenders generally look for a DTI ratio of no more than 36 percent; for an FHA loan, 50 percent; and for a VA or USDA loan, 41 percent.

If you’re considering investing in a condo and renting it out, you’ll need a higher down payment, as well.

How to get a condo mortgage

Compare mortgage lenders and offers. Before setting out to look for a condo, compare mortgage lenders, loan types and offers. There are many ways to finance a condo, so doing the legwork can help you uncover the best — and lowest-cost — option.
Get preapproved. Once you have a lender in mind, get preapproved. That way, you can confidently make an offer when you find the right property.
Do your homework on the property. Get as much information about the community as you can. If an association you’re interested in is in financial trouble, that could make it more difficult to get approved for a loan, or ultimately cost you more for the riskier undertaking.

Can you refinance a condo mortgage?

You can refinance a condo mortgage, but as with getting a mortgage for the purchase of the property, there can be additional hoops to jump through, and you and the condo project need to meet the requirements of the specific type of loan you’re refinancing into. This doesn’t apply to all types of refinances, however — a comprehensive condo review isn’t required for a Fannie Mae High LTV Refinance, for instance.

Similar to refinancing a mortgage on a single-family home, you can prepare to refinance your condo mortgage by checking your credit and home equity level; gathering proof of income (including bank statements, pay stubs and W-2s) and other documentation; and preparing to pay for closing costs. It’s also important to consider why you want to refinance — most homeowners are looking to lower their rate, but there can be other worthwhile reasons to refi, too.