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Single-Family Residence Mortgage Guidelines The most common property type — how lenders evaluate single-family homes. Condo Mortgage Requirements (Warrantable vs. Non-Warrantable) Warrantable vs. non-warrantable condos and what it means for your loan. Property Type Impact on Loan Eligibility (Capstone Decision Guide) How your property type affects which loan programs you can use.

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Co-op Apartment Mortgage Rules Co-op apartment financing involves purchasing shares in a cooperative corporation rather than real property, with a proprietary lease granting occupancy rights to a specific unit. Co-op loans are secured by corporate shares rather than a mortgage lien, face unique board approval requirements, and are concentrated in specific geographic markets, primarily New York City and other northeastern urban areas. Condo Mortgage Requirements (Warrantable vs. Non-Warrantable) Condo mortgage requirements include both borrower qualification and a project-level review that evaluates the condominium association's financial health, insurance coverage, ownership concentration, and litigation status. Warrantable condos meet agency (Fannie Mae, Freddie Mac, FHA, VA) eligibility standards for standard financing, while non-warrantable condos require portfolio or non-QM lending at higher rates and down payments. Fixer-Upper and Renovation Loan Options (203k, HomeStyle) Renovation loan programs such as the FHA 203(k), Fannie Mae HomeStyle, Freddie Mac CHOICERenovation, and VA renovation loans allow borrowers to finance both the purchase price and rehabilitation costs of a fixer-upper property in a single mortgage. These programs use as-completed appraisals, disburse renovation funds through an escrow draw process, and require licensed contractors, feasibility studies, and compliance with strict timelines and inspection requirements. Manufactured and Mobile Home Mortgage Options Manufactured homes are factory-built dwellings constructed to federal HUD Code standards and transported to a home site. Mortgage financing depends critically on whether the home is classified as real property (permanently affixed to a foundation on owned land) or personal property (chattel), with real property classification enabling access to conventional, FHA, VA, and USDA programs at standard or near-standard terms. Mixed-Use Property Mortgage Guidelines Mixed-use properties combine residential and commercial space in a single building or parcel. These properties may qualify for residential mortgage financing (lower rates, longer terms, lower down payments) if the commercial space does not exceed specified percentage thresholds (typically 25-35% of total area) and the borrower occupies the residential portion as a primary residence. Modular Home Financing Modular homes are factory-built in sections and assembled on-site on a permanent foundation, built to the same state and local building codes as site-built homes. For mortgage purposes, modular homes are classified identically to site-built construction and are eligible for all loan programs (conventional, FHA, VA, USDA) without the additional restrictions, LLPAs, or foundation certification requirements that apply to HUD Code manufactured homes. Multi-Unit Owner-Occupied Mortgage Guidelines (2-4 Units) Owner-occupied multi-unit mortgages allow borrowers to purchase 2-4 unit properties while living in one unit, qualifying through residential loan programs (FHA, VA, conventional) with lower down payments and rates than investment property financing. Rental income from non-owner-occupied units can be counted toward qualification at typically 75% of gross market rent. New Construction Mortgage Process New construction mortgages encompass construction-to-permanent (CTP) loans, one-time-close and two-time-close structures, and standard purchase financing for completed spec homes. Construction lending involves staged draw disbursements tied to build milestones, interest reserves covering construction-phase payments, subject-to-completion appraisals based on plans and specifications, lender-approved builder qualification requirements, and extended rate lock strategies with float-down options that differ fundamentally from existing-home purchase financing. Property Type Impact on Loan Eligibility (Capstone Decision Guide) This capstone decision guide synthesizes how each residential property type (SFR, condo, townhouse, multi-unit, manufactured, modular, co-op, mixed-use, new construction, rural, fixer-upper) maps to available loan programs (conventional, FHA, VA, USDA, non-QM), identifying the LLPAs, special requirements, and eligibility restrictions that each property type introduces relative to the standard single-family residence baseline. Rural Property and Acreage Mortgage Guidelines Rural properties with significant acreage face distinct mortgage challenges including lender-imposed acreage limits (commonly 10 acres for conventional loans), complex appraisals requiring land-versus-improvement value separation, well water testing and septic inspection requirements, legal access road documentation, agricultural tax exemption rollback risks, and the critical distinction between hobby farms financeable with standard residential loans and working farms requiring specialized agricultural lending programs through the Farm Service Agency or Farm Credit System. Single-Family Residence Mortgage Guidelines Single-family residences are detached one-unit dwellings on individual lots that represent the simplest and most widely financeable property type in mortgage lending. All major loan programs (conventional, FHA, VA, USDA) fully support SFR financing, though lenders still evaluate property condition, appraisal adequacy, and site characteristics that can affect eligibility and valuation. Townhouse and PUD Mortgage Guidelines Townhouses and planned unit developments (PUDs) are property types where homeowners typically share walls or common areas but may own their lot individually (PUD) or hold an interest in common elements (condo classification). The legal classification as PUD or condominium determines the mortgage review process, with PUDs receiving streamlined treatment similar to single-family homes and townhouse condos requiring full project-level review.

Frequently Asked Questions

Does the type of property affect which loan programs I can use?

Yes. Property type directly affects loan eligibility. Single-family homes qualify for virtually all programs. Condos require project approval for conventional and FHA loans. Manufactured homes have specific foundation and title requirements. Multi-unit properties have different down payment and reserve rules.

What is a warrantable condo?

A warrantable condo meets Fannie Mae and Freddie Mac project eligibility guidelines, including owner-occupancy ratios, HOA financial health, insurance coverage, and commercial space limits. Non-warrantable condos require portfolio or non-QM lending.

Can I get a mortgage on a manufactured home?

Yes, if the home is on a permanent foundation, titled as real property (not personal property), and meets HUD standards. FHA, VA, and conventional programs are available for qualifying manufactured homes. Chattel loans are an alternative for homes titled as personal property.

What is a mixed-use property?

A mixed-use property combines residential and commercial space, such as a home above a retail storefront. Mortgage eligibility depends on the commercial space percentage, which most residential programs cap at 25-49% of total square footage.

How does buying a multi-unit property differ from a single-family home?

Multi-unit properties (2-4 units) can be owner-occupied with residential financing. Down payment requirements are higher (typically 15-25% for investment, 3.5-5% for owner-occupied FHA/conventional). Rental income from non-owner units can help qualify.

Can I finance a fixer-upper with a mortgage?

Yes. The FHA 203(k) program and Fannie Mae HomeStyle Renovation loan allow you to finance both the purchase price and renovation costs in a single mortgage. The scope of repairs determines which program is most appropriate.

Are there special requirements for rural properties?

Rural properties may face appraisal challenges related to comparable sales, acreage, outbuildings, and access roads. USDA loans are specifically designed for eligible rural areas. Conventional and FHA loans are also available but may have stricter property condition requirements.