There are plenty of great Houston condos for sale, but getting the loan to purchase one may be a deal breaker for many would-be homebuyers. In fact, purchasing one of the many Houston condos for sale may be decidedly more difficult than purchasing a home.

Houston condos for sale are available and varied, yet many homebuyers are finding it difficult to secure financing. The nationwide housing decline and credit crisis has left many would-be homebuyers struggling to purchase Houston condos for sale. Many banks and lenders are weary when it comes to lending money for condo purchases, given the fact that so many condos have dropped significantly in value over the last couple years. If a bank or lender extends a condo loan to you, they have to follow Fannie Mae and Freddie Mac’s rules if they are using them as a mortgage underwriter, which is usually the case. And these rules can be quite strict –and quite costly.

However, if you’re looking for Houston condos for sale, it is still possible to secure competitive financing from a lender. Here’s what you need to know if you are interested in purchasing Houston condos for sale:

• Points, points, points – Even if you have a gleaming credit score, expect to pay points on your loan. In fact, it is quite common to pay a three-quarter-point fee. In other words, for every $100,000 you spend, you can expect to pay a $750 fee. This is the case for any condo purchase.

• New construction concerns – Most lenders will not take on loans in buildings where residents are behind on their monthly HOA dues. In the case of new construction, most lenders will not approve you for a loan unless at least 70 percent of the units have been presold. This has increased from 50 percent just a couple years ago. You may want to consider an older building so you won’t have to deal with these new constructions concerns.

• Quickly selling units – You may be able to avoid the 70-percent rule if you are looking to buy a condo in a building that is experiencing brisk sales. If units in a building are selling quicker than average, you may be still be able to swing a condo loan, even if 70 percent of the units have not sold.

• Down payments – If you are interested in purchasing a Houston condo, know that the down payment can make all the difference. In other words, the bigger your down payment the more likely it is that you will be approved for the loan. Expect to come to the table with at least 25 to 50 percent down. The amount requested by the lender for a down payment will vary according to the location of the condo and the type of condo you want to purchase.

• Townhome option - If you want all the perks of condo living (maintenance, community amenities, etc.), you may want to consider a townhome, as lenders are more likely to offer a loan for a townhome because, unlike a condo, you actually own the land on which your townhome sits, thereby decreasing the risk of failure for the lender.