Is It Hard to Get Financing for a Condo

Getting a mortgage for a condo is generally harder than getting a mortgage for a house. A condo unit is part of a multi-unit development, so the borrower’s finances are intertwined with others — and lenders see this type of home as a riskier investment.

What credit score is needed to buy a condo?

→ FHA loans: You’ll need at least a 580 credit score to buy a condo and make the program’s minimum 3.5% down payment. Use the condominium search tool offered by the U.S. Department of Housing and Urban Development (HUD) to see if the project is approved or has been submitted for approval.

Do I have to put 20 down on a condo?

You may need a larger down payment In addition, some lenders may require that you put at least 20 percent down on a condo as a minimum. … However, you will be required to put down 10 percent if buying a condo in a new development that does not include a warranty of at least 10 years.