Eligible Property Types

James J. Hammond
CEO, EquiFund Mortgage

Licensed Loan Originator NMLS# 190210, 22 years mortgage lending, and management.

| April 30, 2023

While most residential property types in the United States are eligible for mortgage financing, some loan programs have limitations and or exclusions. In general, homeowners and homebuyers want to make sure the property is free from water damage, structural damage and is in good condition and habitatel.

If the property requires improvements, it may be wise to consider a home improvement loan like FHA 203K or Fannie Mae HomeStyle or Freddie Mac Choice loan programs, that provide additional funds that will be ear marked for the cost of improvements.

There are different types of loan programs available with unique eligible property requirements, such as FHA, VA, USDA, Conventional mortgages, and Jumbo Loan programs.

Each loan type has its eligible property types. Below is a list of the residential property types that qualify for each loan program.

FHA Loans eligible property types

First-time homebuyers often choose FHA loans because they require lower credit scores and down payments compared to other loan options. FHA loans can be used to buy various types of properties.

1. Single-family homes

2. Condominiums

3. Townhomes

4. Duplexes

5. Manufactured Homes

6. Mobile Homes

VA Loans eligible property types

Active-duty military members, veterans, and their spouses can get VA loans with competitive interest rates and no down payment requirements. These loans can be used to buy various property types.

1. Single-family homes

2. Condominiums

3. Townhomes

4. Manufactured homes

5. Mobile Homes

USDA Loans eligible property types

The purpose of USDA loans is to assist individuals with low-to-moderate incomes in rural regions in buying a home. These loans have attractive features, including low interest rates and no down payment prerequisites. USDA loans can be utilized for various property types, including:

1. Single-family homes

2. Condominiums (in some cases)

3. Townhomes (in some cases)

4. Manufactured homes (if they meet certain requirements)

5. Mobile Homes

Conventional Loans eligible property types

Conventional mortgages are a type of loan that is not guaranteed by the government. They may be harder to get approved for than other loans, but they provide more options for the types of properties that can be purchased. You can use a conventional mortgage to buy the following property types:

1. Single-family homes

2. Condominiums

3. Townhomes

4. Multi-unit properties (up to four units)

5. Manufactured homes

6. Duplex, Triplex homes

Jumbo Loan Programs

Jumbo loans are intended for individuals who require financing for a costly property, and they come with stricter qualifications and higher interest rates than other types of loans. These loans can be used for the acquisition of various property types, including:

1. Single-family homes

2. Condominiums

3. Townhomes

4. Multi-unit properties (up to four units)

Summary of Eligible property types for Mortgage financing in the U.S

To sum up, it's crucial to know which types of residential properties are considered eligible for different loan programs when purchasing a home. Despite certain loan types having more limitations than others, there are still numerous options to assist you in financing your ideal home.

James J. Hammond
CEO, EquiFund Mortgage

Licensed Loan Originator NMLS# 190210, 22 years mortgage lending, and management.

| April 30, 2023

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