Financing Condos and Townhomes

4 Reasons Financing Condos can be more expensive than Townhomes…

Financing Townhomes and Condominiums

Loans for Condos and Townhouses

Financing Condos in today’s real estate market is more difficult and sometimes more expensive than buying a Townhouse. The reasons are related to financing and insurance.  Click here for a definition of the difference between Condos and Townhomes.

1) Condominium Complexes must have prior approval by FHA, the Federal Housing Administration, before buyers can obtain an FHA loan. Buyers are currently using FHA loans because they have the lowest downpayment obligation of just 3.5%.

2) Condominiums need an HO-6 insurance policy before lenders will agree to put a mortgage on the property.  An HO-6 is a special policy providing both some coverage for the contents of an individual unit and some personal liability coverage.

3) Lenders require a special disclosure from the association for which a 200-400 fee is not unusual.  This fee is then paid by the buyer as part of their closing costs.

4) On Conventional lending, those loans not guaranteed by the government, many lenders charge a higher interest rate on loans for Condominiums.

When shopping for a property in Apple Valley, Eagan, Lakeville, Farmington, Rosemount, Burnsville,  Savage or Prior Lake be sure to pay attention to the legal description. It’s a misconception that  all Condos are in buildings with long hallways and elevators.

If you wish to know the status of an individual property, or the value of your own home, just click here and send me the address along with your request.

Read what Sheryl’s clients say about working with Sheryl and the Selling South of the River Team!

Click here to Search for all homes listed in Rosemount!

Click here to contact Sheryl if you would like her to “Sell my Rosemount Home!”


Merry Christmas and Happy New Year!
Tempor placerat pid penatibus eros facilisis rhoncus magna non sed dis risus. Ac ut! Vel vut enim porta lectus est habitasse egestas in. Augue dapibus odio! Rhoncus porttitor scelerisque sagittis, elementum magna, vut scelerisque enim elit parturient dignissim platea vel nascetur porta lacus mid odio, in ut, rhoncus, platea etiam enim quis integer placerat, mid, natoque, non scelerisque non!
Santa Claus
Turpis dis amet adipiscing hac montes odio ac velit? Porta, non rhoncus vut, vel, et adipiscing magna pulvinar adipiscing est adipiscing urna. Dignissim rhoncus scelerisque pulvinar?
Nisi mus sit lectus, velit tincidunt? Aliquam. Adipiscing a duis, enim purus dis, etiam odio auctor sed pulvinar proin dolor. Egestas dolor ridiculus elit lacus nunc quis aliquet. Aliquet et. Nunc et, tristique amet sagittis integer magna.
Please enter your name & email address to subscribe to our newsletter.