Looking to buy a condo in Colorado? Whether you're a first-time homebuyer or a seasoned investor, condo home loans can be a smart way to enter the real estate market. At Choice Mortgage Group in Centennial, CO, we specialize in helping buyers navigate the unique requirements of condo financing.
Unique Condo Loan Considerations
Financing a condo isn’t quite the same as buying a regular house. In addition to your finances, lenders also evaluate the condo building itself. Things like the condo association’s budget, insurance coverage, and owner-occupancy ratio all matter.
That’s why working with a local expert makes all the difference. We know the ins and outs of the Colorado condo market, including properties in Centennial, Denver, and surrounding areas.
For answers to common questions, see our condo loan FAQ section at the bottom of the page.
Types of Condo Loans We Offer
We offer several types of condo home loans to meet your needs:
Conventional Condo Loans
Ideal for borrowers with solid credit and a down payment.
FHA Condo Loans
Low down payment, flexible guidelines (must be an FHA-approved condo).
VA Condo Loans
0% down options for eligible veterans and military buyers.
Jumbo Condo Loans
For high-value condos that exceed conforming loan limits.
Investment Condo Loans
Options for purchasing condos as rental properties.
Non-Warrantable Condo Loans
Options for condos that fall outside of traditional guidelines.
Condo Loan Requirements
To qualify for a condo loan, both you and the condo must meet certain guidelines.
Borrower requirements:
- Steady income and employment history
- Minimum credit score (typically 620+ for conventional)
- Down payment (as low as 3% for qualified buyers)
Condo project requirements:
- Must meet Fannie Mae or Freddie Mac guidelines
- No active litigation involving the HOA
- Sufficient insurance coverage
- Minimum owner-occupancy percentage
- There are many more factors in addtion to these that determine condo eligibility.
Not sure if your condo qualifies? We can check for you.
Get Started with a Colorado Condo Loan Today
Whether you’re buying your first condo or expanding your investment portfolio, we're here to help. Reach out for a free consultation or to get pre-approved today.
Get Pre-Approved Now
Check if Your Condo Qualifies
Helpful Resources:
Condo loan FAQs
A condo loan finances the purchase of a condominium unit, where you own the interior space but share ownership of common areas and land with other unit owners. Unlike a traditional house loan, condo financing also involves an evaluation of the entire condo project's financial health and characteristics.
Condo loans can sometimes be more complex than single-family home loans because lenders must approve not only the borrower but also the entire condominium project. Factors like high investor concentration, ongoing litigation, or inadequate reserves within the HOA can make financing more challenging.
Yes, both FHA and VA loans can be used to buy condos in Colorado, but the specific condominium project must be approved by the FHA or VA respectively. It's crucial to check if a particular condo development is on their approved lists, as many are not.
Condo project approval means the entire condominium complex meets specific financial, occupancy, and structural criteria set by lenders or government agencies like Fannie Mae, Freddie Mac, FHA, or VA. If a project isn't approved, it can be difficult or impossible to get certain types of financing for units within it.
Homeowners Association (HOA) fees are considered a part of your monthly housing expense and directly factor into your debt-to-income (DTI) ratio, affecting how much loan you can qualify for. Significant special assessments can also impact the project's financial stability and your loan eligibility.
The typical down payment for a condo loan in Colorado can vary significantly based on the loan type and the specific project's approval status, often ranging from 3% to 10% or more for conventional loans. Some projects, especially those deemed non-warrantable, may require larger down payments.
A warrantable condo meets Fannie Mae or Freddie Mac guidelines, making it eligible for conventional financing. A non-warrantable condo doesn't meet these criteria, often due to factors like high investor ownership or pending litigation, and may require specialized financing options.
HOA fees can vary widely but often range from $200 to $500 per month. They typically cover maintenance of common areas, amenities, and sometimes utilities.
A condo questionnaire is a document lenders require to assess the financial health and governance of the condo association. It includes details about budgets, insurance, and occupancy rates.
Yes, but financing terms may differ. For investment properties, lenders often require higher down payments and interest rates.
There are many reasons why a condo may not be eligible for conventional financing. The most common reasons include insufficient reserve funds, high delinquency rates on HOA dues, high concentration of investor-owned properties, or ongoing litigation involving the HOA.
