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Property Type Impact Calculator

How property type changes your loan

Condos, co-ops, multi-unit buildings, and manufactured homes can come with a higher rate, a bigger minimum down payment, or fewer loan options than a regular house. Pick the type of home and how you’ll use it, then enter the price, your down payment, and the rate you’d get on a regular house.

  1. A detached house is the baseline

    Lenders see a stand-alone house (a , or SFR) as the safest property to lend on. Other types are seen as riskier to resell, so they often carry a rate add-on, called an .

  2. How you’ll use it changes the terms

    The same home needs less down as than as a second home or rental. Some add-ons also depend on your (LTV): a typical condo add-on disappears at 25% down.

  3. Not every loan program says yes

    Government-backed FHA, VA, and USDA loans have their own property rules, and a condo building has to pass a project review to be . We show which programs this type of home qualifies for.
Enter the rate you’d get on a regular house. A current 30-year average works until you have a lender quote. Weighing loan options? Mortgage loan types explains each program.
How you’ll use it
The home and your loan

Choose the kind of property, then enter the price and what you plan to put down. The rate is what you’d be quoted on a regular detached house.

$
$
%
You’re putting 20.0% down ($100,000). Loan: $400,000, or 80% .

Condo (warrantable) as your main home

+0.125% higher rate than a detached house

Your rate for this type

6.375%

+0.125% vs a detached house

Monthly loan payment

$2,495

+$33 vs a detached house

Extra paid over the loan

$11,740

if you keep it all 30 years

Minimum down (main home)

3%

$15,000 on this price

Typical minimum credit score

620

you have 740

What this means

On a $400,000 loan, a warrantable condo as your main home would cost about 6.375% instead of 6.250%. That adds $33 a month, or about $11,740 if you keep the loan all 30 years. You need at least 3% down ($15,000), which you have, and this home qualifies for Conventional, FHA, and VA loans. Putting 25% down ($125,000, $25,000 more) would remove the condo add-on; with the smaller loan, the payment would drop to about $2,309 a month.

Rate add-ons and minimums here are typical figures; each lender sets its own pricing and rules. The monthly payment is principal and interest only, before property tax, insurance, HOA dues, and mortgage insurance.

Loan program eligibility

Which major mortgage programs can finance this type of home for this use. Click a program name for what it is.

Eligible

Eligible

Project must be FHA-approved

Eligible

Project must be VA-approved

Not eligible

Rural eligibility required

What lenders look for: Condo (warrantable)

  • •Warrantable = meets Fannie/Freddie project requirements (HOA finances and reserves, dues delinquencies, insurance, no major litigation, etc.).
  • •+0.125% rate hit at LTV >75% (LLPA condo adjustment).
  • •Investment condos: 15% down minimum (Fannie's 85% investment LTV, with a Full Review of the project). Investment-property LLPAs also raise the rate.
  • •FHA only on FHA-approved condo projects (FHA Connection database).
Terms in these notes: , ,
For comparison, a detached single-family house: rate 6.250%, monthly $2,463, minimum down 3% as a main home.

Results are estimates based on your inputs and the assumptions on this page, not quotes or advice. A lender, servicer, or tax advisor will give you different numbers. Disclaimer

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Terms used on this page

Lenders sort homes by property type and by how you’ll use them, then price and approve loans by program. These are the terms they use.

Single-family detached (SFR)
A stand-alone house on its own lot with no shared walls. Lenders treat it as the baseline, lowest-risk property and price other types against it.
Warrantable condo
A condo in a building that meets Fannie Mae and Freddie Mac project rules (HOA finances and reserves, insurance, ownership concentration, no major lawsuits), so standard conventional loans are available. Non-warrantable condos need specialty financing.
Co-op
Instead of owning real estate, you buy shares in a corporation that owns the building, which gives you the right to live in a unit. The co-op board must approve buyers, and fewer lenders offer co-op loans.
PUD (planned unit development)
A community of homes with an HOA that owns shared areas like roads or a pool. Houses in a PUD are usually financed like detached houses. More
Occupancy
How you’ll use the home: as your main home, a second home, or a rental investment. Main homes get the lowest down payments and rates; rentals need the most down.
LLPA (loan-level price adjustment)
Extra pricing Fannie Mae and Freddie Mac add for risk factors such as property type, down payment, and credit score. Lenders pass it on as a higher rate or an upfront fee. More
LTV (loan-to-value ratio)
Your loan as a percentage of the home’s price or value. A $375,000 loan on a $500,000 condo is 75% LTV, the point at or below which this tool drops the typical condo add-on. More
FHA loan
A mortgage insured by the Federal Housing Administration that allows as little as 3.5% down. Only for a home you’ll live in, and condos must be in an FHA-approved project. More
VA loan
A mortgage backed by the Department of Veterans Affairs for eligible veterans and service members, usually with no down payment. Only for a home you’ll live in. More
USDA loan
A mortgage backed by the U.S. Department of Agriculture for homes in eligible rural areas, for buyers under local income limits. No down payment required. More

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