Condo mortgage financing in the DMV
When you buy a condo in DC, Maryland, or Virginia, the lender reviews the building as well as you. A problem in the condo questionnaire can stop a loan before your credit score has a chance to matter. So I like to review the building first, then pick the right loan: FHA, conventional, VA, or jumbo.
The condo package decides the loan
Owner occupancy, reserves, litigation, commercial space, and one owner holding too many units are all things that can trip up a condo project. Some buildings are not FHA-approved. Others fail the conventional questionnaire. VA has its own condo list too.
I want those facts before you waive any dates you cannot get back. If the building is in Washington DC or Arlington, send it to me early.
A co-op is not a condo, and loans on co-op shares have a shorter menu of options. If you are looking at a co-op, tell me in your first email.
HOA dues raise the monthly payment
A lower rate with high dues is not necessarily cheaper. Include the dues when you run numbers on the mortgage calculator, even if they are not part of your escrow. The result is an example, not a quote.
If you are a first-time buyer and heard that FHA is the condo loan, take a look at the loan programs before you decide. The project can block FHA while conventional still works, or the other way around.
What I need from you
- The condo questionnaire, if there is one
- An HOA contact
- Any special assessment mentioned in the listing
- Any talk of the building’s insurance not being renewed
Finding a problem with the building early costs far less than paying for an appraisal on a project that will not finance.
Common questions
Can I get a condo mortgage in DC?
Often yes, but the building still has to pass the questionnaire. Co-ops have a shorter menu, so tell me up front which one you are buying.
Does VA finance condos in Northern Virginia?
It can, when the project is acceptable and your residual income still works after dues. See VA loans.
Should I waive the condo review to win the offer?
I will tell you the risk, but we still need the questionnaire. Listing photos do not replace it.
Related: Conventional or FHA? What first-time buyers need to know
Next step
Send me the property type, your occupancy plans, and your income, and I will tell you what can close. Contact me and we will start with the building.
— Rich Jones
Note: Rates, fees, and program guidelines change often and depend on your credit, income, and property. This post is general education, not a Loan Estimate or a commitment to lend. Contact me for numbers that fit your situation.