What is a warrantable condo?

A warrantable condo is a condominium that meets Fannie Mae and Freddie Mac guidelines for conventional financing. To be warrantable, the condo project must meet these requirements: 1) Investor concentration — no more than 50% of units are investor-owned (non-owner occupied). 2) Owner-occupancy — at least 50% of units are owner-occupied (some exceptions allow 35%). 3) Commercial space — no more than 50% of the project is commercial space. 4) HOA budget — adequate budget with at least 10% of budget allocated to reserves for replacements. 5) Pending litigation — no pending litigation against the HOA (except minor cases like noise complaints). 6) Delinquent HOA dues — no more than 15% of units are 60+ days delinquent on HOA dues. 7) Single entity ownership — no single entity owns more than 10% of units (20% for projects with 10-19 units). 8) Condominium hotel — the project is not a condotel (no rental program managed by a hotel operator). If a condo meets all these requirements, it is warrantable and eligible for conventional, FHA, VA, and USDA financing at standard rates (5.875-7.250%) with low down payments (3-5%).

What is a non-warrantable condo?

A non-warrantable condo is a condominium that does not meet Fannie Mae or Freddie Mac guidelines. Common reasons a condo is non-warrantable: 1) High investor concentration — more than 50% of units are investor-owned. 2) Low owner-occupancy — less than 50% owner-occupied (or 35% with exceptions). 3) High commercial space — more than 50% commercial space. 4) Inadequate reserves — HOA budget does not allocate 10% to reserves. 5) Pending litigation — significant litigation against the HOA. 6) High delinquency rate — more than 15% of units 60+ days delinquent on HOA dues. 7) Single entity ownership — one entity owns more than 10% of units. 8) Condotel — the project operates as a condo-hotel with a rental program. 9) New construction — the project is not yet completed or does not have enough sold units. Non-warrantable condos can still be financed, but only through portfolio lenders or Non-QM lenders. These loans require 20-30% down and have higher rates (7.500-9.500%). Best lenders for non-warrantable condos: New American Funding (80% LTV, 6.125%), Rocket Mortgage (75% LTV, 5.875%), and Guaranteed Rate (75% LTV, 5.875%).

Can I get an FHA loan for a condo?

Yes, you can get an FHA loan for a condo, but the condo project must be FHA-approved. FHA offers two paths for condo financing: 1) HRAP (HUD Review and Approval Process) — the entire condo project is approved by FHA. You can search approved projects on the FHA Condominium Approval list on HUD.gov. With HRAP approval, you get 96.5% LTV (3.5% down) with 580+ credit. 2) SPRAP (Single-Unit Approval, formerly spot approval) — individual units can be approved without full project approval. SPRAP requires 90% LTV (10% down) and the project must meet certain requirements (max 10 units, 50% owner-occupied, no pending litigation). FHA condo requirements: 50% max investor concentration, 50% min owner-occupancy (35% with exceptions), max 50% commercial space, 10% reserves in HOA budget, no pending litigation, max 15% delinquency rate. If the condo is not FHA-approved, you can ask the HOA to pursue approval, but this can take 3-6 months. Alternatively, use conventional financing (3-5% down) if the condo is warrantable.

Can I get a VA loan for a condo?

Yes, you can get a VA loan for a condo, but the condo project must be VA-approved. VA maintains a list of approved condo projects on the VA website. VA condo requirements: 1) Project approval — the condo project must be on the VA approved list. 2) Owner-occupancy — at least 50% owner-occupied (some exceptions). 3) Investor concentration — no more than 50% investor-owned. 4) HOA financials — adequate reserves and no financial issues. 5) Pending litigation — no significant pending litigation. 6) VA loan terms — 0% down, 580+ credit, no PMI, VA funding fee (waived for disability). If the condo is not VA-approved, you can request VA project approval through your lender, but this can take 2-4 months. Alternatively, use conventional financing (3-5% down) if the condo is warrantable, or FHA (3.5% down) if the condo is FHA-approved. Best VA condo lenders: Rocket Mortgage (5.875%, 0% down), Guaranteed Rate (5.875%, 0% down), and U.S. Bank (6.000%, 0% down).

What is a condotel and can I get a mortgage for one?

A condotel (condominium-hotel) is a condo project that operates as a hotel, where unit owners can place their units in a rental program managed by a hotel operator. Owners receive a portion of the rental revenue when their unit is rented. Condotels are common in resort areas like Miami, Las Vegas, Orlando, and Hawaii. Getting a mortgage for a condotel is challenging because Fannie Mae, Freddie Mac, FHA, and VA do not finance condotels. Financing options: 1) Portfolio lenders — some banks hold condotel loans in their own portfolio. 2) Non-QM lenders — specialize in condotel financing. 3) Private/hard money — short-term condotel financing. Condotel mortgage requirements: 25-30% down, 680-700+ credit, 8-11% interest rate, 70-75% max LTV, rental revenue analysis required. Best condotel lenders: New American Funding (condotel specialist, 25% down, 8%), Rocket Mortgage (condotel financing, 25% down, 8.25%), and Guaranteed Rate (condotel options, 25% down, 8%). Condotels can be good investments in high-demand resort areas but come with higher financing costs and HOA fees.

How much down payment do I need for a condo?

The down payment for a condo depends on the condo type and loan type: 1) Warrantable condo — conventional 3-5% down, FHA 3.5% down, VA 0% down, USDA 0% down. 2) Non-warrantable condo — 20-30% down (portfolio/Non-QM lenders). 3) Condotel — 25-30% down (specialized lenders). 4) Jumbo condo — 10-20% down (for loans above $806,500). On a $400,000 condo: Warrantable conventional (5% down) = $20,000, Warrantable FHA (3.5% down) = $14,000, Warrantable VA (0% down) = $0, Non-warrantable (25% down) = $100,000, Condotel (30% down) = $120,000. In addition to the down payment, you need 2-5% for closing costs and 2-12 months of reserves (depending on lender and condo type). Total cash to close on a $400K warrantable condo: $28,000-$32,000. Total cash to close on a $400K non-warrantable condo: $112,000-$120,000.

What makes a condo non-warrantable?

A condo becomes non-warrantable when it fails to meet one or more of the Fannie Mae/Freddie Mac guidelines. The most common reasons: 1) High investor concentration — more than 50% of units are owned by investors (rented out), not owner-occupied. 2) Low owner-occupancy — less than 50% of units are owner-occupied (Fannie Mae allows 35% with exceptions). 3) Too much commercial space — more than 50% of the project is commercial (retail, office, hotel). 4) Inadequate reserves — the HOA budget does not allocate at least 10% to reserves for replacements. 5) Pending litigation — the HOA is involved in significant litigation (construction defects, structural issues, etc.). 6) High delinquency rate — more than 15% of units are 60+ days delinquent on HOA dues. 7) Single entity concentration — one entity (person or company) owns more than 10% of units. 8) Condotel structure — the project has a rental program managed by a hotel operator. 9) Incomplete project — new construction where less than 90% of units are sold or under contract. 10) Budget issues — the HOA has financial problems or inadequate insurance coverage. If any of these apply, the condo is non-warrantable and requires portfolio or Non-QM financing with 20-30% down.

Can I buy a condo with 3.5% down?

Yes, you can buy a condo with 3.5% down using an FHA loan, but the condo project must be FHA-approved. Here is how: 1) Check FHA approval — search the FHA Condominium Approval list on HUD.gov to see if the project is approved. 2) HRAP-approved project — if the project is on the approved list, you get 96.5% LTV (3.5% down) with 580+ credit. 3) SPRAP (Single-Unit Approval) — if the project is not approved, you may qualify for SPRAP with 90% LTV (10% down) if the project has 10 or fewer units and meets other requirements. 4) Conventional alternative — if the condo is warrantable, you can get 3% down with conventional financing (620+ credit, no FHA approval needed). On a $400,000 condo with 3.5% FHA down: down payment = $14,000, loan amount = $386,000, monthly MIP = $271 (in addition to P&I), total monthly payment = approximately $2,700 (P&I + MIP + taxes + insurance + HOA). Best FHA condo lenders: Rocket Mortgage (5.875%, 580 credit), Guaranteed Rate (5.875%, 580 credit), and New American Funding (6.125%, 580 credit).

What HOA documents does the lender need for a condo mortgage?

When financing a condo, the lender needs to review the HOA documents to ensure the project meets lending guidelines. Required documents include: 1) HOA budget — current annual budget showing income, expenses, and reserve allocations. 2) Reserve study — a professional study showing the condition of common elements and estimated replacement costs. 3) Bylaws and CC&Rs — Covenants, Conditions, and Restrictions that govern the condo project. 4) Master deed — the legal document that establishes the condominium. 5) Insurance — master insurance policy (property and liability) and flood insurance if in a flood zone. 6) Pending litigation disclosure — any current or pending lawsuits involving the HOA. 7) Delinquency report — percentage of units 60+ days delinquent on HOA dues. 8) Investor concentration report — percentage of units that are investor-owned vs owner-occupied. 9) Commercial space disclosure — percentage of the project that is commercial space. 10) Condo questionnaire — a form completed by the HOA management company answering specific lender questions about the project. The lender uses these documents to determine if the condo is warrantable (meets Fannie/Freddie guidelines) or non-warrantable. The condo review process typically takes 1-3 weeks.

Are condo mortgage rates higher than single-family home rates?

For warrantable condos, mortgage rates are the same as single-family home rates (5.875-7.250% in 2026). Fannie Mae and Freddie Mac do not charge rate adjustments for warrantable condos. However, there are some cost differences: 1) Conventional warrantable condo — same rate as single-family, but may have a 0.75% loan-level price adjustment (LLPA) for condos with LTV > 80% and credit score < 740. 2) FHA condo — same rate as FHA single-family (5.875%), same MIP. 3) VA condo — same rate as VA single-family (5.875%), same funding fee. 4) Non-warrantable condo — 1.5-3% higher rate than warrantable (7.500-9.500%). 5) Condotel — 2-4% higher rate than warrantable (8.000-11.000%). 6) Jumbo condo — same rate as jumbo single-family if warrantable. The key: if the condo is warrantable, you get the same rates as a single-family home. If non-warrantable or condotel, rates are significantly higher. To verify your condo is warrantable, ask your real estate agent or lender to review the condo project before making an offer.

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MORTGAGE22 min read2026-08-15

Sarah Mitchell

Senior Mortgage Advisor & Editor-in-Chief · NMLS #1874256, CFP

Condo Mortgage Guide 2026: Top 10 Lenders Compared (Warrantable, Non-Warrantable, Condotel)

Rates Updated: June 27, 2026

Getting a mortgage for a condo is more complex than for a single-family home. Lenders classify condos as warrantable (eligible for Fannie Mae/Freddie Mac financing), non-warrantable (does not meet Fannie/Freddie guidelines), or condotel (condo-hotel with rental program). Each classification has different lenders, rates, and requirements. In 2026, warrantable condos get the same rates as single-family homes (5.875-7.250%), while non-warrantable condos require 20-25% down with rates from 7.500-9.500%, and condotels require 25-30% down with rates from 8.000-11%. FHA has specific condo approval requirements (HRAP/SPRAP), and VA requires condo project approval. We compared the top 10 condo mortgage lenders and ranked them based on condo type flexibility, rate, max LTV, loan types, and experience with condo financing. Whether you are buying a warrantable condo in a major city, a non-warrantable condo in a resort area, or a condotel as an investment, this guide covers every option available in 2026. [cta:Compare today's best condo mortgage rates|mortgage]

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Top 10 Condo Mortgage Lenders 2026: Side-by-Side Comparison

We compared the 10 best condo mortgage lenders across 7 critical factors: starting rate, condo types financed, max LTV by condo type, loan types, min credit score, condo approval process, and special features.

Not all lenders finance non-warrantable condos or condotels. These 10 have proven experience with all condo types. Compare condo lenders

Rank	Lender	Starting Rate	Condo Types	Max LTV (Warrantable)	Max LTV (Non-Warrantable)	Get Started
1	Rocket Mortgage	5.875%	Warrantable, Non-Warrantable, Condotel	95% (5% down)	75% (25% down)	Get condo mortgage
2	Guaranteed Rate	5.875%	Warrantable, Non-Warrantable, Condotel	95% (5% down)	75% (25% down)	Get condo mortgage
3	Wells Fargo	6.000%	Warrantable, Non-Warrantable	95% (5% down)	70% (30% down)	Get condo mortgage
4	Bank of America	6.000%	Warrantable, Non-Warrantable	95% (5% down)	70% (30% down)	Get condo mortgage
5	U.S. Bank	6.000%	Warrantable, Non-Warrantable	95% (5% down)	75% (25% down)	Get condo mortgage
6	New American Funding	6.125%	Warrantable, Non-Warrantable, Condotel	95% (5% down)	80% (20% down)	Get condo mortgage
7	Chase	6.125%	Warrantable, Non-Warrantable	95% (5% down)	70% (30% down)	Get condo mortgage
8	loanDepot	6.125%	Warrantable, Non-Warrantable	95% (5% down)	75% (25% down)	Get condo mortgage
9	Better.com	5.990%	Warrantable only	95% (5% down)	N/A	Get condo mortgage
10	PNC Bank	6.250%	Warrantable, Non-Warrantable	95% (5% down)	75% (25% down)	Get condo mortgage

Best Lenders for Condo Mortgage Guide

Nov 1

Rocket MortgageBEST RATE

Best online experience

5.750%

Min credit: 620

Better.com

No lender fees

5.625%

Min credit: 620

Veterans United

Best for VA loans

5.500%

Min credit: 580

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Warrantable vs Non-Warrantable vs Condotel: Complete Comparison

Understanding the difference between warrantable, non-warrantable, and condotel condos is critical for getting a mortgage. Here is a complete comparison.

Warrantable condos get the best rates and lowest down payments. Non-warrantable and condotel condos require specialized lenders. Compare condo types

Feature	Warrantable Condo	Non-Warrantable Condo	Condotel	Get Started
Definition	Meets Fannie Mae/Freddie Mac condo guidelines	Does not meet Fannie/Freddie guidelines	Condo-hotel with rental program managed by hotel operator	Compare definitions
Financing available	Conventional, FHA, VA, USDA — all loan types	Portfolio/Non-QM lenders only	Specialized condotel lenders only	Compare financing
Down payment	3-5% conventional, 3.5% FHA, 0% VA	20-30% down	25-30% down	Compare down payments
Interest rate	5.875-7.250% (same as single-family)	7.500-9.500%	8.000-11.000%	Compare rates
Max LTV	95-97% conventional, 96.5% FHA, 100% VA	70-80%	70-75%	Compare max LTV
Min credit score	620 (conventional), 580 (FHA)	660-680	680-700	Compare credit requirements
Condo project review	Full review (Fannie/Freddie) or limited review	Lender-specific review (no Fannie/Freddie)	Lender-specific review + rental program analysis	Compare review process
HOA requirements	Budget review, reserve study, no litigation	Same but more flexible	Rental program revenue analysis	Compare HOA requirements
Investor concentration	Max 50% investor-owned (Fannie/Freddie)	No limit (lender-dependent)	Often 100% investor-owned	Compare investor limits
Best for	Primary residence in established condo projects	Unique condos, resort condos, high investor concentration	Investment in resort/hotel condo properties	Choose best option

FHA Condo Approval Requirements 2026

FHA has specific condo project approval requirements. Here is a complete breakdown of what makes a condo FHA-approved.

FHA condo approval can be done through HRAP (HUD Review and Approval Process) or SPRAP (Single-Unit Approval, formerly spot approval). Check FHA condo approval

Requirement	HRAP (Full Project Approval)	SPRAP (Single-Unit Approval)	Get Started
Approval type	Entire condo project approved by FHA	Individual unit approved without project approval	Compare approval types
Max LTV	96.5% (3.5% down)	90% (10% down)	Compare max LTV
Min credit score	580 (3.5% down), 500 (10% down)	580	Compare credit
Investor concentration	Max 50% investor-owned	Max 50% investor-owned	Check investor limit
Owner-occupancy	Min 50% owner-occupied (or 35% with exceptions)	Min 50% owner-occupied	Check occupancy
Commercial space	Max 50% commercial space	Max 50% commercial space	Check commercial space
HOA budget	Adequate budget with 10% reserves for replacements	Adequate budget with 10% reserves	Check budget
Pending litigation	No pending litigation (except minor cases)	No pending litigation	Check litigation
Delinquent HOA dues	Max 15% of units 60+ days delinquent	Max 15% of units 60+ days delinquent	Check delinquencies
Max units per project	No maximum	Max 10 units in project (SPRAP limit)	Check unit limit

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Condo Mortgage Cost Comparison by Type ($400K Condo)

Here is a cost comparison showing the financial difference between buying a warrantable, non-warrantable, and condotel condo on a $400,000 property.

A warrantable condo saves $185,000+ in interest over 30 years compared to a condotel due to lower rates and down payments. Compare condo costs

Cost Factor	Warrantable (5% down, 6%)	Non-Warrantable (25% down, 8%)	Condotel (30% down, 9.5%)	Get Started
Down payment	$20,000 (5%)	$100,000 (25%)	$120,000 (30%)	Compare down payments
Loan amount	$380,000	$300,000	$280,000	Compare loan amounts
Interest rate	6.000%	8.000%	9.500%	Compare rates
Monthly P&I	$2,278	$2,201	$2,353	Compare monthly cost
Total interest (30yr)	$440,080	$492,360	$567,080	Compare total interest
Total cost (30yr)	$820,080	$792,360	$847,080	Compare total cost
Cash to close	$28,000 (down + closing)	$112,000 (down + closing)	$134,000 (down + closing)	Compare cash to close
HOA dues (monthly)	$300-$500	$300-$600	$500-$1,000 (includes hotel amenities)	Compare HOA dues

How to Get a Condo Mortgage: Step-by-Step Guide

Getting a condo mortgage requires additional steps compared to a single-family home. Here is a step-by-step guide.

The key: verify the condo project is approved (or approvable) for your loan type before making an offer. Get your condo mortgage

Step 1: Determine the condo type — warrantable, non-warrantable, or condotel (ask the HOA or your real estate agent)
Step 2: Check FHA condo approval status — search the FHA Condominium Approval list on HUD.gov if using FHA financing
Step 3: Check VA condo approval status — search the VA condo approval list if using VA financing
Step 4: Review the HOA documents — budget, reserves, bylaws, pending litigation, investor concentration, delinquency rate
Step 5: Get pre-qualified with at least 3 lenders from our top 10 (confirm they finance your condo type)
Step 6: Compare offers — look at rate, max LTV for your condo type, and condo review process timeline
Step 7: Make an offer with a condo contingency — include a contingency for condo project approval and document review
Step 8: Lender condo review — the lender will review the condo project (full review for warrantable, lender-specific for non-warrantable)
Step 9: Condo appraisal — the appraiser will evaluate both the unit and the condo project condition
Step 10: Close on your condo — sign documents and move in (or rent out if investment property)

Mortgage Calculator

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Down Payment

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Interest Rate (%)

Loan Term (years)

Loan Amount$320,000

Monthly Payment$1,867

Total Interest$352,276

Total Paid$672,276

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Today's Best Mortgage Rates

Updated November 1, 2026

Lender	Rate	APR	Fees	Best For	Action
Veterans United	5.500%	5.641%	$0	VA loan specialist	Check Rate
Navy Federal CU	5.500%	5.628%	$0	No PMI, military only	Check Rate
Better.com	5.625%	5.765%	$0	No lender fees	Check Rate
New American Funding	5.625%	5.780%	$1,095	FHA specialist, fast closing	Check Rate
Rocket Mortgage	5.750%	5.890%	$1,295	Best online experience	Check Rate
CrossCountry Mortgage	5.750%	5.895%	$1,500	Non-QM, complex files	Check Rate

Rates shown are illustrative. Actual rates vary by credit score, location, and loan details.

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Sarah Mitchell NMLS #1874256, CFP

Senior Mortgage Advisor & Editor-in-Chief

15+ years as a licensed mortgage advisor (NMLS #1874256) and CFP. Former senior underwriter at Rocket Mortgage. Featured in Forbes and Bankrate.

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Condo Mortgage Guide 2026: Top 10 Lenders Compared (Warrantable, Non-Warrantable, Condotel)

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Top 10 Condo Mortgage Lenders 2026: Side-by-Side Comparison

Best Lenders for Condo Mortgage Guide

Warrantable vs Non-Warrantable vs Condotel: Complete Comparison

FHA Condo Approval Requirements 2026

Get Matched with Top Lenders Instantly

Condo Mortgage Cost Comparison by Type ($400K Condo)

How to Get a Condo Mortgage: Step-by-Step Guide

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Today's Best Mortgage Rates

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Frequently Asked Questions

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