Understanding the Asset Behind the Loan
Single-Family Residential (SFR): The most straightforward type. Eligible for all loan programs without special conditions. Condominiums require condo project approval — the entire development must be reviewed, not just the individual unit. Non-warrantable condo characteristics that disqualify from conventional agency financing: a single entity owns more than 20% of units, more than 15% of units are 60+ days delinquent on HOA dues, the project is involved in litigation affecting common elements, commercial space exceeds 35% of total square footage, or the project has hotel/resort transient occupancy restrictions. Order HOA questionnaires immediately — HOAs can take weeks to respond. Two-to-Four Unit Properties: Owner-occupied 2–4 unit eligible for FHA (3.5% down), conventional (5–15% down), and VA if eligible. Investment property 2–4 unit: typically 20–25% down, 75% of market rents used for qualifying. Manufactured Housing: Must be classified and titled as real property (not chattel), on a permanent foundation, and manufactured after June 15, 1976 (HUD standards date). Subject to stricter appraisal requirements. Planned Unit Development (PUD): Individual lots and homes plus common areas maintained by an HOA. Owners hold title to their lot and home. Generally treated like SFR for underwriting.