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June 26, 2026What Are Financing Options for Phoenix Condos
If you need a mortgage to buy a Phoenix condo, you’ll be glad to know that in most cases, condos can be financed just like a single-family home using conventional financing. However, because buying a condo also means purchasing an interest in shared common elements — the pool, clubhouse, parking, and often the building’s exterior — lenders sometimes have additional requirements that need to be met first.
What Lenders Examine When Financing a Condo
To determine whether a condo qualifies for conventional financing, lenders review information obtained directly from the Homeowners Association. This is typically provided through a condo questionnaire during the escrow period. Here’s what they look at:
- Master insurance policy — The entire grounds and building exteriors must be adequately insured.
- Reserve levels — Most HOAs maintain a reserve account for common area maintenance. Conventional lenders typically require that at least 10% of the annual operating budget be held in reserves.
- Renter-to-owner ratio — If more than 50% of units are renter-occupied, conventional financing may not be available.
- HOA delinquencies — If more than 15% of homeowners are 60 or more days behind on dues, conventional financing may be off the table.
- Active lawsuits — If the HOA is currently named in a lawsuit, the lender may require special review.
If a community doesn’t meet these requirements, it’s considered “non-warrantable,” meaning conventional financing isn’t an option. Non-conventional loans are sometimes available but tend to be harder to obtain and more expensive.
FHA Financing
FHA-insured loans are popular with first-time buyers due to lower down payment requirements. For condos, the simplest path is choosing a community that’s already on the FHA-approved list — though that list is fairly limited in the Phoenix area. The alternative is working with a mortgage broker who can pursue a spot approval for FHA financing on the specific unit you’re buying. In most cases, if a community is warrantable for conventional financing, FHA approval is also achievable.
VA Financing
VA loans — available to eligible veterans — work similarly, and are easiest when the community is already on the VA-approved list. The good news is that over 350 condo communities in Phoenix are on that list. VA financing is an excellent option for veterans looking to purchase with no down payment.
Navigating condo financing is a bit more involved than a standard home purchase, but we help our clients through the process every step of the way. Ready to buy in Phoenix? We’d love to help. Contact us to get started.
Though not guaranteed, information and statistics in this article have been acquired from sources believed to be reliable.
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Find Your Perfect Phoenix Luxury Condo
Whether you’re drawn to urban sophistication, resort-style living, or full-service elegance, Phoenix has a luxury condo community to match. Contact our team to start your search — we specialize in navigating the Phoenix luxury condo market and would love to help you find the right fit.
Though not guaranteed, information and statistics in this article have been acquired from sources believed to be reliable.
