Not all properties qualify the same way. A three-bedroom house and a three-bedroom condo sit at different risk levels in a lender's underwriting system, even if they cost the same and sit on the same street. Understanding how property type drives eligibility helps you budget accurately and avoid surprises at closing.
Single-family residences
A detached single-family home on its own lot typically qualifies for the widest range of programs and the most competitive pricing. Conventional loans can go as low as three percent down for owner-occupants, FHA as low as 3.5 percent, and VA and USDA offer zero-down options when you meet service or geographic requirements. Rates are usually the baseline against which other property types are measured.
Two- to four-unit properties
Duplexes, triplexes, and fourplexes still count as residential if you occupy one unit, but lenders require larger reserves and higher down payments—often ten to fifteen percent conventional, fifteen percent FHA. Rates may run fifteen to fifty basis points higher than single-family. These figures are illustrative; rates and products are subject to change and this is not a commitment to lend. The trade-off: rental income from the other units can count toward qualifying income, after a vacancy deduction.
Condominiums
A condo must appear on the lender's approved project list or meet spot-approval criteria: owner-occupancy ratio above fifty percent, budget reserves adequate, no pending litigation, and the homeowners association commercially insured. Warrantable condos price close to single-family homes; non-warrantable condos—those with high investor concentration or deferred maintenance—require portfolio products with larger down payments and higher rates. Co-ops, common in older East Coast markets, are harder still: treated as personal property, not real estate, so only portfolio and specialized lenders finance them, typically at twenty to thirty-five percent down.
Manufactured and modular homes
Modular homes built to local building codes on permanent foundations usually qualify like site-built single-family homes. Manufactured homes built to HUD code face stricter rules: the home must be on a permanent foundation, titled as real property, built after June 1976, and meet minimum size requirements. FHA's Title II program covers qualifying manufactured homes, but expect smaller loan limits and slightly higher rates than traditional construction.
Mixed-use properties
A building with commercial space on the ground floor and residential units above qualifies as mixed-use if residential square footage exceeds fifty-one percent. Most portfolio lenders cap the commercial portion at forty-nine percent, require twenty-five percent down, and add fifty to seventy-five basis points to the rate.
The Alliance take
Property type isn't cosmetic—it dictates which underwriting matrix applies. Before you write an offer, confirm the property meets program rules for your loan type and budget for the correct down payment and rate tier. We review property eligibility during pre-approval so you shop with accurate numbers. Start an application and we'll map out exactly which programs fit your target property.