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Condo financingCondo loans
Financing a condo works a lot like any home loan, with one big difference: the lender also reviews the condo project and HOA. Knowing whether a building is warrantable, FHA-approved, or a better fit for an alternative program saves time and surprises.
NMLS #1660690 · Reviewed by UMortgage+
Warrantable vs. non-warrantable condos
With a condo, the lender reviews the whole project, not just your unit. Whether the building is "warrantable" decides which loan programs are available.
Usually warrantable
- Meets Fannie Mae / Freddie Mac project standards
- Healthy owner-occupancy and budget reserves
- No single entity owning too many units
- No major pending litigation or unresolved safety issues
- Opens the door to conventional pricing and low down payments
Often non-warrantable
- Large share of units rented or investor-owned
- Significant HOA dues delinquencies
- Pending litigation or deferred structural repairs
- Condotels, short-term rental use, or heavy commercial space
- Small or still-under-construction projects that miss criteria
Condo questionnaire and HOA review
Questionnaire to the HOA
Your lender sends the HOA or management company a condo questionnaire covering occupancy, budget, reserves, insurance, and litigation.
Budget, insurance, and docs
Underwriting reviews the HOA budget, master insurance policy (and flood coverage where required), and governing documents.
Project decision
The project is accepted for the program, or a loan officer pivots you to an alternative such as FHA single-unit approval or Non-QM.
Plan for fees and time
HOAs often charge for questionnaires and can take days to respond, so a loan officer orders it early in the process.
FHA-approved projects and single-unit approval
FHA-approved project
- Check the HUD condo approval list for the building
- Approved projects allow FHA financing with a low down payment
- Approvals expire and must be renewed by the HOA
Single-unit approval (SUA)
- Lets an individual unit qualify in a project that is not on the FHA list
- Project must still meet certain occupancy and financial standards
- Not every project or unit qualifies; ask early
HOA dues count in your debt-to-income ratio
Monthly HOA dues are added to your housing payment alongside principal, interest, taxes, and insurance. Higher dues reduce how much you can borrow, even when the price looks affordable. Special assessments may also be reviewed. Test scenarios in the affordability calculator.
Example: how HOA dues change the payment
| Sample item | Amount |
|---|---|
| Purchase price | $350,000 |
| Down payment (5%) | $17,500 |
| Sample note rate (placeholder) | 6.5% |
| Principal & interest | $2,102 |
| Taxes + insurance (estimate) | $350 |
| HOA dues | $400 |
| Total housing payment used for DTI | $2,852 |
In this sample, $400 in HOA dues adds about 16% to the housing payment the lender counts. Mortgage insurance is excluded. Run your own numbers in the payment calculator.
All figures are hypothetical placeholders for illustration only, not today's rates or terms. Not a rate quote, APR disclosure, or commitment to lend. Actual rates, payments, and eligibility depend on credit, occupancy, property, program guidelines, and market conditions. Ask a loan officer for a personalized Loan Estimate.
Frequently asked questions
What makes a condo non-warrantable?
A project is usually non-warrantable when it misses agency standards, such as high investor concentration, large HOA delinquencies, pending litigation, short-term rental or hotel-style operations, or unresolved structural issues.
Can I get a loan on a non-warrantable condo?
Often, yes. Non-QM and some portfolio programs finance non-warrantable condos, typically with a larger down payment and different pricing. a loan officer can compare options.
What is a condo questionnaire?
It is a form the HOA or management company completes for the lender covering occupancy, budget, reserves, insurance, and litigation. HOAs often charge a fee for it.
Can I use FHA on a condo that is not FHA-approved?
Possibly. FHA single-unit approval can allow an individual unit to qualify if the project meets certain standards. Availability depends on the project and current HUD guidelines.
Do HOA dues affect how much I can borrow?
Yes. Monthly HOA dues are counted in your housing payment and debt-to-income ratio, so higher dues lower the loan amount you qualify for.
How long does condo approval take?
It depends on how quickly the HOA returns the questionnaire and documents. Ordering it early in the process helps avoid closing delays.
Educational content only. Guidelines change. Confirm details with UMortgage+ powered by NEXA Lending, LLC, before you apply.
Talk through your condo before you write an offer
Get a personalized quote from a loan officer or call (480) 233-7897.