Can you purchase a condo with a USDA loan?
Are condos eligible for a USDA loan?
This is a great question, and in today’s video I will explain what properties can be eligible for a USDA loan and how it can be possible to purchase a condo with a USDA loan.
Remember though, the first step to any mortgage is a proper qualification and as a USDA Approved Lender that is what we do best, so just call or email to discuss your scenario, state a new pre-qualification, or take advantage of our free Second Opinion Service (SOS).
Can you purchase a condo with a USDA loan?
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 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.”
FHA Approved Condo List
VA Approved Condo List
Fannie Mae Approved Condo List
- 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 or email 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.
800-806-9836 Ext. 280
SeanS@MPLX.org
I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!
