48 Meriden Rd, Suite 1, Middlefield, CT 06455

Condo Loans in Connecticut

Condo Loans

If you’re looking to purchase a condo in Connecticut, the requirements are different from purchasing a single-family home. In addition to you being evaluated as the purchaser, the condo association must qualify for your mortgage to be approved. There are some differences in the qualifications whether you are obtaining Conventional Condo Loans or an FHA (Federal Housing Administration) mortgage.


Conventional Condo Loans:

In order to qualify a borrower for a conventional mortgage, a lender will look at the following:

  • FICO score of 620 or greater
  • A down payment of at least 5%
  • Debit to income ratio of at least 37%

As with a single-family home, the condo is appraised to ensure it’s worth what you’re paying but in addition, the condo association is also received to ensure:

  • The association’s finances are in good standing
  • Percentage of owner-occupied units or units in foreclosure
  • The condo documents. Associations are governed by a legal agreement. All are different and the lender will want to ensure there are no red flags in the documents that would jeopardize the value of the condo.

FHA Mortgages:

The requirements for a borrower to obtain an FHA mortgage are less strict than a conventional mortgage. In general, a borrower may qualify if they have:

  • A minimum FICO score of 580
  • Down payment of at least 3.5%
  • Debit to income ratio of 55%

The condo must also be included on the FHA-approved condo list. Unfortunately, to be an FHA-approved condo depends on requirements that you, as the borrower, cannot control. Some of the requirements are:

  • 50% of the condo units must be owner occupied.
  • No more than 15% of the units can be more than 30 days behind in their association dues.
  • And no more than 30% of the units in the complex can be secured with an FHA loan.


No matter what type of home you are looking to purchase or what type of mortgage you are looking to obtain, the first step is to pre-qualify. Northeast Financial specializes in condo loans and we are here to help every step of the way!



Kristina L. Refsbeck


Company NMLS#117273

Cell: 203-293-8377



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