Best Loan Options for Buying a Condo in 2025 | reAlpha Mortgage

Buying a condo should feel like a smart, exciting step, not an overwhelming puzzle. But if you've ever tried comparing condo mortgage options, you’ve probably run into lender jargon, unclear requirements, and some serious information gaps. We get it. Condo loans aren’t one-size-fits-all, and not knowing the full picture could cost you thousands.

Whether you’re buying your first home, relocating, or adding an investment property to your portfolio, this guide will help you navigate the best financing options for condos without the stress. Let’s sort through the confusion and get you the clarity (and loan) you deserve.

• Understand how condo loans differ from standard mortgages.
• Compare FHA, Conventional, Jumbo, and Portfolio loan options.
• Learn how to avoid common pitfalls with condo financing.

Condos come with unique complexities. Unlike single-family homes, condos involve shared spaces, HOA fees, and stricter underwriting. Here’s what you need to know:

• Lender Risk Assessment: Lenders scrutinize not just your finances, but the condo building’s health, occupancy rates, reserve funds, litigation, etc.
• Loan Approval: Some loans won’t apply if the condo complex doesn’t meet specific criteria (e.g., too many non-owner-occupied units).
• Higher HOA Fees: This fee can affect your debt-to-income (DTI) ratio and loan approval.

Pro Tip: Ask for the condo’s questionnaire early. It can make or break your mortgage approval.

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Most common for qualified buyers.

• Down Payment: As low as 3% with qualifying income & credit
• Ideal For: Buyers with solid credit (typically 620+)
• Condo Approval: Must be on the Fannie Mae/Freddie Mac approved list
• Bonus: No upfront mortgage insurance, cancellable PMI.

Flexible option, especially for first-time buyers.

• Down Payment: 3.5%
• Credit Score: Minimum 580
• Condo Eligibility: Must be FHA-approved (searchable list online)
• Heads Up: Includes upfront and monthly mortgage insurance.

For high-cost areas where home prices exceed conforming limits.

• Down Payment: Typically 10–20%
• Credit Score: Often 700+
• Ideal For: Luxury condo buyers
• Important: Strict underwriting and large reserve requirements.

When your situation doesn’t fit the box.

• Flexibility: Tailored to self-employed, investors, or unique credit scenarios
• Down Payment: Varies by lender
• Pros: No traditional income verification in some cases
• Caution: Rates and fees may be higher.

See what lenders look at more than your income:

• Credit Score: Aim for 620+ for Conventional, 580+ for FHA
• DTI Ratio: Try to stay under 43%, including HOA dues
• Reserves: Lenders often want to see 2–6 months of expenses saved
• Condo Project Review: Full or limited review, depending on your loan type.

Action Step: Gather recent pay stubs, tax returns, bank statements, and the HOA’s condo documents. The cleaner your file, the smoother your approval.

• Compare Rates from at least three lenders (shop smart, not fast)
• Review Condo Docs: Check for pending litigation, delinquent HOA dues, or special assessments
• Understand Closing Costs: Budget for upfront fees and insurance
• Negotiate Smart: Don’t waive inspections or skip HOA review

Helpful Tool: Consider working with reAlpha Mortgage to connect with trusted experts and maximize your savings-our homebuying platform helps you secure up to 75% of your buyer agent’s commission back, putting more money toward your future home.

It depends on your loan type. FHA loans start at 580, while conventional loans typically require 620 or higher.

Yes, due to stricter condo project reviews and additional underwriting layers.

Absolutely. FHA and Conventional options both allow down payments as low as 3%.

The association’s financial health impacts your investment risk. Lenders want to ensure the building is well-maintained and financially stable.

Yes - reAlpha offers a smarter way to buy. You can get up to 75% of your buyer agent’s commission rebated to you when you bundle your home search with reAlpha Mortgage and title services - saving you thousands at closing.

Buying a condo doesn’t have to drain your savings. With reAlpha Mortgage, you can unlock up to 75% of your buyer agent’s commission back - real cash that can be used for inspections, closing costs, or your move-in checklist. Here’s how it works:

• 25% rebate when you buy with a reAlpha agent

• 50% rebate when you bundle with reAlpha Mortgage

• 75% rebate when you also close with reAlpha Title

Start your smarter homebuying journey with reAlpha Mortgage today and save thousands where it matters most—at the closing table.

This article is for educational purposes only and does not constitute financial advice. All loan products are subject to credit and underwriting approval. Terms and conditions may apply and are subject to change without notice. Interest rates and APRs are illustrative and may not reflect current market conditions.

NMLS #1743790. reAlpha Mortgage is a licensed mortgage lender. reAlpha is a homebuying platform that empowers you to unlock up to 75% of your buyer agent’s commission rebate through agent, mortgage, and title bundling.

Find the Perfect Mortgage for Your Dream Home with reAlpha Mortgage.

Compare options, calculate payments, and get expert guidance - all in one place.

Check if you qualify