Compare current condo mortgage rates
Advertiser Disclosure
The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear, except where prohibited by law for our mortgage, home equity and other home lending products. This table does not include all companies or all available products. Bankrate does not endorse or recommend any companies.
Jeff Ostrowski covers mortgages and the housing market. Before joining Bankrate in 2000, he spent more than 20 years writing about real estate, business, the economy and politics.
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.
Current condo mortgage rates
Mortgage rates for condos and other types of properties have been volatile in recent years. During the pandemic, rates on 30-year fixed mortgages fell below 3 percent. At times in 2022 and 2023, they had climbed above 7 percent. The main driver has been the return of inflation, and the Federal Reserve’s response — namely, raising interest 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. 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
- Work on your credit score. Your credit score is the primary driver of your mortgage rate, so start boosting it right away.
- Start saving for a down payment. You don’t need 20 percent down if it’ll be your primary residence, but the more you can save, the more flexibility you’ll have.
- Set a budget. It’s fun to fantasize about buying the penthouse, but it’s much more practical to purchase only what you can reasonably afford. Your monthly mortgage payment will be even higher thanks to rising interest rates, so you might have to adjust your expectations (if not your budget) to find an affordable condo.
- 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.
What are the qualifications 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.
Your finances are just part of the picture, however. The condo association where you’re buying also matters. After an oceanfront condo tower near Miami collapsed in 2021, lenders tightened rules around condo lending, and have begun scrutinizing the physical and financial condition of condo buildings. Fannie Mae and Freddie Mac exclude condos from mortgage eligibility for a variety of reasons: because of structural defects, because they’re considered condo-hotels, because they’re in mixed-use buildings with a large percentage of commercial uses or because their reserves fall below minimum requirements.
What are the different 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
- Non-warrantable condo loans – If you’re buying in a condo that isn’t financed by the traditional options, this might be your only choice. Rates are higher, perhaps by 2 percentage points or so.
Should you get a condo mortgage?
Compared to single-family homeowners, condo owners are less likely to use mortgages. If you don’t have enough cash to buy the unit outright, though, and need a loan, the process is quite similar to getting a mortgage on a house.
What are some alternatives to purchasing a condo?
Condos are the most common legal framework for ownership of mulitfamily living spaces, but cooperative units, or co-ops, are another option. Most common in New York City, co-ops are structured so that residents own shares in a corporation rather than the actual real estate. You can pursue financing to purchase co-op shares using a mortgage lender or bank, and the process is somewhat similar to financing a condo. A co-op loan isn’t as easy to come by as other types of mortgages, but some lenders do specialize in them. They tend to cost more than a condo loan, as well.
Condo mortgage FAQs
-
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.
-
There are some differences in the process of getting a mortgage for a single-family home versus 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. -
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 refinance, too.
Additional resources for condo mortgages
Mortgage rates in other states
- United States
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington DC
- West Virginia
- Wisconsin
- Wyoming