Financing for a condo is different than financing for a single family home or a zero lot line. For example, some lenders will only offer an adjustable rate mortgage if you’re purchasing a condominium - which could cost you more in the long run! Discover why RMN believes in offering fixed rate mortgage for condo purchases.
Fixed Rate Condominium Financing
It’s important to understand that if you talk to the right lender, who offers fixed rate financing for condominiums, you may be getting a better financing option. You can finance with a fixed rate mortgage for a condominium with a VA loan, a Rural Development loan, or a Conventional loan if the condo project meets program requirements. The majority of condo projects in our market meet the requirements and are eligible for approval. The lender you’re talking to needs to understand how you can get those condo projects approved, and they have to have the authority to submit them for approval.
FHA recently announced that it is now able to approve condominiums on a single unit basis. This is something we are definitely keeping our eye on, but aren't participating in at this time. Our main concern is that the lengthy turn time for approval will prevent FHA from being a competitive condo financing option for buyers in our fast-moving real estate market. Even though we can underwrite approvals for FHA loans, they don't allow lenders to approve condo projects.
Trust RMN for Your Fixed Rate Condo Financing
Of course, our approval process remains quick and smooth for condos with VA, RD, and Conventional financing. Our office has authority to process approvals for these programs, so we can get you fixed rate financing for any of these options. If you’ve been told by another lender that a condo project is not eligible for fixed rate financing, I encourage you to reach out to our office. Often times they are other ways that we can get a project approved.