Condo Mortgage Rates
Why condominium mortgage rates can differ from single-family rates, how project review works, and what Florida condo buyers should know about reserves, insurance and approval.
Conventional benchmark: Freddie Mac weekly survey
Week of August 20, 2026Source: Freddie Mac Primary Mortgage Market Survey via FRED, updated August 20, 2026. National average survey rates, not an offer. Your rate will depend on credit score, loan-to-value, loan type, property and occupancy. Rates could change or not be available at commitment or closing. This product uses the FRED® API but is not endorsed or certified by the Federal Reserve Bank of St. Louis.
How Condo Mortgage pricing relates to this benchmark. Condo loans use the conventional benchmark above as the starting point and add condo-specific loan-level adjustments, most noticeably above 75 percent loan-to-value and for projects that do not meet agency warrantability rules, where pricing moves to non-QM territory.
How Condo Mortgage rates are set
Condominium mortgages use the same base rates as single-family loans, but conventional pricing adds a loan-level adjustment for condos in many scenarios, particularly for loan-to-value ratios above 75 percent and for adjustable-rate loans. The adjustment exists because a condo's value depends partly on the financial health of the association and the project as a whole, which the borrower does not control.
Beyond the borrower, the lender must approve the project. Fannie Mae and Freddie Mac review the association's budget, reserves, owner-occupancy ratio, commercial space, litigation and, since 2022, structural condition and deferred maintenance. Projects that do not pass a full review may still qualify for a limited review at lower loan-to-value ratios. FHA and VA maintain their own approval lists.
Florida is the most scrutinized condo market in the country. Following the 2021 Surfside collapse, Florida law now requires milestone structural inspections and structural integrity reserve studies for buildings three stories or taller, and associations can no longer waive reserves for structural components. Many older coastal buildings face large special assessments, and both agencies maintain lists of projects that are ineligible pending repairs. Buyers should request the association's inspection reports, reserve study and budget early.
Insurance matters as well. The association's master policy must meet agency requirements for wind, flood (where applicable) and liability coverage, and rising premiums in Florida have pushed some associations into coverage gaps that stall approvals. The unit owner also needs an HO-6 policy. Association dues, which include the master insurance, are counted in the debt-to-income ratio, so high dues reduce buying power.
Condotels, projects with heavy short-term rental use and buildings with a single owner holding many units may fall outside agency guidelines and require non-QM or portfolio financing at a higher rate. A licensed originator can run the project through a preliminary review before you go under contract.
Rates shown could change or may not be available at commitment or closing.
Daily rate-lock index (OBMMI)
Updated daily by providerIndex data © Optimal Blue, LLC. Optimal Blue Mortgage Market Indices.
Source: Optimal Blue Mortgage Market Indices (OBMMI), updated August 26, 2026. National average survey rates, not an offer. Your rate will depend on credit score, loan-to-value, loan type, property and occupancy. Rates could change or not be available at commitment or closing.
Condo Mortgage Rates: common questions
Are condo mortgage rates higher than single-family rates?
Conventional loans often carry a small pricing adjustment for condos above 75 percent loan-to-value. FHA and VA do not add a condo adjustment but require the project to be approved.
What makes a Florida condo non-warrantable?
Common reasons include inadequate reserves, pending structural repairs, unresolved litigation, high investor concentration, a single entity owning too many units, or hotel-style operations.
What documents should I get from the association?
The current budget, reserve study, milestone inspection report if applicable, master insurance declarations, meeting minutes and any notice of special assessments.
Can I get an FHA loan on a Florida condo?
Yes, if the project is on the FHA approved list or the unit qualifies for single-unit approval. Many Florida projects have let their FHA approval lapse, so check early.