Buy a Salt Lake City Condo with 5% down Conventional financing

I spoke to my favorite lender this morning and he informed me that he can now offer Conventional financing for condominiums with just a 5% down payment.  The lowest down payment last year for Conventional condo financing was 10% down.  You can get 3.5% down condo financing with an FHA loan, but the condo project has to be on FHA approved list of condos, which is limitted.

This is great for condo buyers and I also think it’s a good sign that lenders are loosening up a little bit.  Since mid 2007, financing for homes and condos has tightened up with lenders less willing to take risk.  This has led to higher down payments, higher credit requirements and fewer loan programs.  5% down payment convnetional loans for condos is a small step in the other direction.