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A ski condo may qualify for a second-home mortgage, but its resort location does not guarantee that classification—or a 10% down payment. Fannie Mae’s August 2026 Eligibility Matrix permits up to 90% loan-to-value (LTV) for an eligible one-unit second-home purchase, which implies 10% down at that agency limit. The lender’s underwriting and the condo project’s review can require more, and a property primarily operated as a rental may need to be financed as an investment property instead.
The practical starting point is to confirm how you will use and control the condo, ask the lender to review the specific association and project, and budget for reserves as well as the down payment and closing funds.
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How much down payment does a ski condo need?
For an eligible one-unit second-home purchase, Fannie Mae’s Eligibility Matrix, dated August 5, 2026, lists a maximum 90% LTV. At that ceiling, the loan covers 90% of the value used in the LTV calculation and the buyer contributes the other 10% as a down payment. That is an agency maximum—not a promise that a lender will approve a particular borrower or condo with 10% down.
The applicable LTV is generally calculated against the lower value used by the lender for the transaction, rather than assuming the purchase price always controls. For a simple illustration, if that value were $500,000, a 90% loan would be $450,000 and the down payment would be $50,000. If the value used in the calculation were $480,000 instead, 10% would be $48,000. These examples show the arithmetic only; they are not loan quotes, and they do not include closing costs, prepaid expenses, reserves, or any additional cash a lender may require.
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For a ski condo, the project review is a key reason the minimum can be higher. Fannie Mae cautions that lower LTV, combined LTV (CLTV), or high combined LTV (HCLTV) limits may apply depending on the condo-project review. The lender’s own rules, borrower qualifications, loan product, and the association’s project eligibility can also affect the offer. Ask for a review of the actual condo project before relying on the 10% figure.
What makes a ski condo eligible as a second home?
The property must meet Fannie Mae’s second-home occupancy requirements; being in a resort or ski market is not enough. The Fannie Mae Selling Guide’s occupancy rules say the home must “be occupied and used by the borrower as a second home for some portion of the year.”
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- Be occupied and used by the borrower for some part of the year.
- Be a one-unit dwelling suitable for year-round occupancy.
- Remain under the borrower’s exclusive control.
- Not be primarily used or operated as a rental property.
A timeshare is not eligible under these requirements, nor is a setup in which a management firm controls occupancy. Those details can matter in a ski development where an owner may be asked to join a rental pool or sign an agreement that limits when the owner can use the unit. The key question is not just whether you plan to visit, but whether the property and any rental or management arrangements still meet the second-home conditions.
If the property does not meet the second-home definition—for example, because it is primarily operated as a rental—Fannie Mae treats it as an investment property for occupancy purposes. Do not use second-home down-payment assumptions for that scenario. Ask the lender to quote the loan based on the intended use and classification.
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Can you rent out a second-home ski condo?
Occasional rental does not automatically disqualify a property, provided it still satisfies the second-home requirements. Under Fannie Mae’s rule, a lender may identify rental income from a property delivered as a second home, but that rental income cannot be used to qualify the borrower.
That distinction matters when estimating affordability. A projection of peak-season bookings should not be treated as income that will help the borrower meet the lender’s qualification requirements under this second-home path. The borrower must qualify without relying on income from that home, while still meeting the occupancy, control, and other property conditions.
The cited Fannie Mae occupancy rule does not establish a universal annual rental-day cap. Instead, it focuses on whether the home is genuinely a second home under the stated conditions and whether rent is used for qualification. A homeowners association may have its own rental restrictions, and local ordinances may impose separate requirements. Confirm those rules for the specific building and jurisdiction; they are separate from the mortgage classification question.
How can the condo project change the cash you need?
The 90% LTV figure is not the only eligibility limit in play. Fannie Mae’s matrix expressly warns that condo project review can call for lower LTV, CLTV, or HCLTV limits. A lower permitted loan amount means a larger down payment or a different financing plan may be needed; in some cases, the assumed project or loan path may not work.
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Before making an offer or settling on a cash budget, ask the lender what review applies to the particular condo project and what documents it needs from the association. The project—not merely the individual unit—can be part of the lender’s eligibility decision. Do not assume that a unit’s second-home use settles whether its project meets the lender’s requirements.
It is also useful to distinguish the basic LTV ceiling from loan pricing. Fannie Mae’s Loan-Level Price Adjustment (LLPA) Matrix effective September 30, 2026 lists pricing adjustments by factors including LTV, credit score, occupancy, and condo status. It is a pricing document, not a borrower-specific rate offer or approval. The matrix directs lenders to the Selling Guide and Eligibility Matrix for eligibility, so a pricing adjustment does not substitute for confirming that the loan and project qualify.
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How much cash should you budget beyond the down payment?
Plan separately for closing funds and required reserves. For a Desktop Underwriter (DU) casefile, Fannie Mae’s minimum reserve requirements specify two months of reserves for a second-home transaction. These reserves are based on the qualifying payment amount, calculated using PITIA: principal, interest, taxes, insurance, and applicable association assessments.
Reserves are not simply another name for the down payment. Funds used to close are deducted before the lender determines what remains for the reserve requirement. In other words, a buyer who has enough cash to cover the down payment and closing funds may still need additional eligible funds left over after closing. DU can also require more reserves based on its overall risk assessment, and borrowers with multiple financed properties may face additional reserve calculations.
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For a condo, make sure your planning reflects the association assessment in the qualifying payment calculation where applicable. The two-month figure is the DU baseline described in the guide, not a cap on what a particular file may require. Ask the lender to show the estimated cash to close and reserve requirement as separate amounts, and confirm what funds can count toward reserves under the lender’s rules.
How should you report the property’s occupancy?
Represent the intended use accurately on the mortgage application. The FHFA instructions for the Uniform Residential Loan Application say to select “Second Home” when a borrower intends to occupy the property but not as a primary residence; the instructions give a vacation home as an example. Select “Investment Property” when all borrowers intend to own but not occupy the property.
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For a ski condo, that means the classification should follow the real plan—not the label used in a listing, the fact that the unit is furnished, or a hope that a second-home loan will be cheaper. If you expect to use the property yourself for part of the year, explain the intended use and any rental arrangement to the lender. If you do not intend to occupy it, or its operation is primarily rental, discuss an investment-property scenario instead.
Which financing scenario fits your plans?
| Property and borrower scenario | Agency reference | What to plan for |
|---|---|---|
| Eligible one-unit second-home purchase | Fannie Mae maximum 90% LTV in its August 5, 2026 matrix | 10% down at the agency ceiling, before any lower lender or condo-project limit. |
| Condo project with a review restriction | The matrix notes that lower LTV, CLTV, or HCLTV limits may apply depending on review. | More down may be required; confirm the specific project with the lender. |
| Property primarily operated as a rental, or one that fails the second-home occupancy conditions | Fannie Mae’s occupancy rules treat a property failing the second-home requirements as an investment property. | Request an investment-property quote rather than applying second-home assumptions. |
| Borrower with more than one financed property | Fannie Mae’s reserve guidance includes additional reserve calculations for multiple financed properties. | Cash needed beyond down payment and closing funds may increase. |
What should you confirm with the lender before committing?
Use these questions to turn the agency rules into a property-specific estimate:
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- Does my intended use qualify as a second home? Explain how often you expect to occupy it, whether you will rent it, and who controls the unit’s occupancy.
- What value and LTV limit are you using? Ask for the resulting down-payment estimate and whether the lender’s limit differs from Fannie Mae’s 90% matrix ceiling.
- Has the condo project been reviewed? Ask whether project review changes the allowed LTV, CLTV, or HCLTV, and what association materials are still needed.
- Can rental income count? For the second-home treatment described here, it cannot be used to qualify. If you need rental income to qualify or the property is chiefly a rental, ask for an investment-property analysis.
- What cash must I have beyond the down payment? Request separate estimates for closing funds and reserves, including the DU reserve amount and any additional requirement for your file or other financed properties.
- How does condo status affect pricing? Ask for a borrower-specific quote. The LLPA matrix lists adjustment factors but does not determine an individual borrower’s final rate.
Reconfirm the lender’s requirements near application and closing. Agency matrices, lender policies, project information, association rules, and local rental regulations can change or vary by transaction. The figures here describe the cited Fannie Mae rules as of the dates shown; they are not a preapproval or a determination for a particular borrower, unit, or ski market.
Frequently Asked Questions
Does a ski condo have to be usable in summer to count as a second home?
Fannie Mae’s rule requires a one-unit dwelling suitable for year-round occupancy. A seasonal ski location does not by itself answer whether the unit meets that property condition; ask the lender to assess the specific unit.
Will a lower down payment always mean a higher mortgage rate?
Not necessarily in a way that can be determined from the maximum LTV alone. Fannie Mae’s LLPA matrix identifies factors that can affect pricing, but only a lender’s quote reflects the borrower, loan, and property together.
Can a condo association stop me from using a second-home mortgage?
Association rules can restrict rentals or owner access, which may affect whether the planned use and control are consistent with second-home eligibility. The lender must also assess the condo project under its applicable review; verify both the association’s rules and the lender’s project decision.
What happens if my plans change after I close?
A later change in use can raise mortgage, association, or local-rule questions that are not resolved by the original down-payment limit. Review your loan documents and contact your servicer or a qualified local professional before changing occupancy or rental arrangements.
