This exemption only applies to your primary residence; it cannot be applied to rental or investment properties. Homestead exemptions are available in 46 states. Some state laws allow for a certain percentage of your home’s value to be exempted; other states use a set dollar figure.
What does mortgage the homestead mean?
Basically, a homestead exemption allows a homeowner to protect the value of her principal residence from creditors and property taxes. A homestead exemption also protects a surviving spouse when the other homeowner spouse dies.
What’s the different about getting a condo mortgage?
But getting that convenience means you have to put up with a few extra challenges when it comes to qualifying for a condo mortgage. Condominium mortgage requirements are more stringent than those for a conventional home loan, and the mortgage rates are generally higher as well.
Are there higher mortgage rates for condos in Florida?
You may also find that some lenders will charge higher mortgage rates for condo mortgages made in certain states, particularly Florida and Nevada. While these increases are often fairly small, in some cases they can be nearly half a percent higher than what you’d pay for the same loan in a different state.
How much do you have to put down on a condo loan?
As noted above, you need to put at least 25 percent down on a condo to get the best rates offered on a Fannie Mae loan; single-family home buyers can get the best rates by putting down only 20 percent or less. In addition, some lenders may require that you put at least 20 percent down on a condo as a minimum.
What’s the difference between a single family home and a condominium?
The rate may be higher. The mortgage rates on condominiums are usually higher than what the same borrower would pay if they were purchasing a single-family home on similar terms. That’s because condominium mortgages are considered somewhat riskier loans than are mortgages for single-family homes.
