Condo financing has unique requirements compared to single-family homes. Understanding your options helps you secure the best terms and avoid surprises during the buying process.
Several mortgage options are available for LA condo purchases, each with different requirements and benefits:
Standard mortgages with competitive rates. Typically require 5-20% down and good credit scores.
Government-backed loans with lower down payments (3.5%) but require FHA-approved condo buildings.
For veterans and active military. Zero down payment option, but building must be VA-approved.
For high-value properties exceeding conforming loan limits. Common for luxury LA condos.
FHA loans are popular with first-time buyers due to lower down payment requirements. However, the condo building must be on the FHA-approved list. Key requirements include:
Mark can help identify which LA condo buildings are FHA-approved and guide you through the approval process.
Conventional loans offer more flexibility than FHA but still have condo-specific requirements:
Many Los Angeles condos exceed conforming loan limits, requiring jumbo financing. Current conforming limits in LA County are higher than the national baseline due to high-cost area designations.
Jumbo loan considerations:
Lenders scrutinize condo HOA finances to ensure the building is well-managed. They typically review:
Pre-approval is essential before shopping for condos. It shows sellers you're a serious buyer and helps you understand your budget. The pre-approval process involves:
Mark works with trusted lenders who specialize in condo financing and can recommend options based on your situation.
California offers several programs to help first-time and qualifying buyers with down payments:
Eligibility varies by program. Mark can connect you with resources to explore your options.
Condos involve shared ownership structures through HOAs that add risk factors lenders must evaluate. The building's financial health, insurance coverage, reserve funds, and management quality all affect financing eligibility. Lenders review the entire HOA's finances, not just your individual unit.
You can still purchase with conventional financing if the building isn't FHA-approved. Many newer or smaller buildings may not have pursued FHA certification. Some buildings may pursue FHA approval—Mark Herrera can advise on the building's status and help you explore all your financing options.
Expect 2-5% of the purchase price for closing costs in Los Angeles. This includes lender fees, title insurance, escrow fees, and prepaid items like property taxes and homeowners insurance. On a $600,000 condo, budget approximately $12,000 to $30,000 for closing costs.
Yes, but investment properties typically require larger down payments (15-25%) and have higher interest rates than primary residences. Some buildings restrict investor purchases or have rental caps that may affect financing. Mark can help identify investment-friendly buildings.
Los Angeles County is designated as a high-cost area, so conforming loan limits are higher than the national baseline. For 2024, the conforming loan limit for a single-unit property in LA County exceeds $1 million. Properties above this limit require jumbo financing.
Condo mortgage approval typically takes 30-45 days, sometimes longer if the building requires additional review. Pre-approval can be obtained in 1-3 days. The longer timeline for condos is due to lender review of HOA documents, including budgets, reserves, and CC&Rs.
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