Financing the purchase of a condominium home is somewhat different than the process of buying a single-family home. For one, a condo mortgage usually comes with higher interest rates, and it can also be more difficult to qualify for thanks to additional underwriting.

Are there higher mortgage rates for condos in Florida?

You may also find that some lenders will charge higher mortgage rates for condo mortgages made in certain states, particularly Florida and Nevada. While these increases are often fairly small, in some cases they can be nearly half a percent higher than what you’d pay for the same loan in a different state.

What’s the difference between a condo and a home loan?

That’s because condominium mortgages are considered somewhat riskier loans than are mortgages for single-family homes. On a conventional mortgage backed by Fannie Mae, the rate on a condo will usually run about one-eighth to one-quarter of a percent (0.125-0.250 percentage points) higher than what you’d pay on…

What kind of down payment can you get on a condo?

Still, in other areas the down payment on a condo can be as little as 5 percent for those with excellent credit. FHA loans, as noted before, allow down payments of as little as 3.5 percent on condos.

How to find the best mortgage rates for condos?

And amenities — like fitness facilities, a pool and spa; perhaps even a cafe. While condo mortgage terms are often different than terms on single-family home loans, you’ll still want to shop for the best interest rate. The NerdWallet condo mortgage rate tool returns customized interest rate offers in just seconds.

Can a mortgage company Check Your Credit Score?

Potentially yes, as sometimes lenders may have reason to further check your affordability. Usually, this is done in the event that something substantial changes on your mortgage application which could affect your ability to keep up with payments. This could be: An application for a higher loan.