Obtaining a mortgage to purchase a condo works differently than getting a loan to buy a single-family home. Dollar for dollar, a typical condo loan will have stricter requirements and higher costs than a home loan for a standalone house at the same price.
Mortgages for condo units are more expensive than mortgages for single family homes due to the fact that the value of the condo unit is subject to additional risk factors, many of which are outside the borrower’s control.
Typically, rates for condos are higher than the interest rates for a single-family home. Although the difference in monthly payment seems small, remember that condo association dues are a mandatory addition to your bill, which you will also have to qualify with.