USDA Condo Guidelines: Purchasing a Condo with a USDA loan
It’s possible to purchase a condo with a USDA loan, but with applicable guidelines. In today’s video, I’ll review USDA condo guidelines.
Remember though, the first step to any mortgage is proper qualification. To walk you through the USDA condo approval process please review our complimentary download here!
USDA Condo Guidelines
So, can you buy a condo with a USDA loan? Well, yes you can, but remember that Condominiums are a form of ownership and not tied to a specific property style or building type.
With that in mind, USDA guidelines have the following definitions:
“Condominium projects typically consist of multi-unit buildings governed by an HOA. Each unit is individually owned, and the common areas such as hallways and recreational facilities are owned by all the unit owners.
“Although less common, it is possible for condominium projects to consist of detached or attached single family dwellings.”
Additional Guidelines
USDA condo guidelines provide that:
- “Units in a condominium project are eligible for a guarantee if the condominium has been approved or accepted by HUD/FHA, VA, Fannie Mae or Freddie Mac.”
- HOA dues for dwellings in a condominium project must be included in total debt-to-income ratios.
- Applicants remain responsible to obtain individual homeowners insurance or flood insurance as applicable
Please keep in mind that when dealing with condominiums, additional underwriting guidelines or project eligibility factors may be considered when determining eligibility.
Just call 800-806-9836 Ext. 280 or email SeanS@MPLX.org if you have any USDA qualifying questions, want to discuss a new scenario, or would just like to take advantage of our free 2nd opinion service which is great for both existing transactions & pre-qualifications.
I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!
