FHA Approved Condos

Buying an FHA approved condo means one important thing; it has to be on the list. Before you get too far into the process, make sure that the condos you are looking at are FHA approved condos. They have to be on the list, and if they are not, they would have to be reviewed and approved by the lender. What this means for you is a lengthy process so depending on how quickly you need or want to move this could be a pain.



Last year, if a condo wasn’t FHA approved, then it could have a spot check, but that is no longer the case. Your realtor should know what you’re looking for, so just make sure that you give them this information up front. That way, they can pull the correct listings on what you are looking for.



Buying an FHA approved condo doesn’t have to be hard, but they do have requirements. In addition to making sure it’s on the list, there have to be at least two or more units. You won’t find a standalone condo that is FHA approved.



Be sure that the condo isn’t in a develop that is partially commercial, as FHA requires that there be no more than 25% units being used for commercial purposes. Also, no more than 10% of the condos can be owned by the same investor. As you can imagine having that much ownership in most condo developments would make for a large portfolio.



There are many more requirements you’ll need to know about before shopping for an FHA approved condo. For more information, you can visit www.fhaloansnow.net. This is a great resource for all of your FHA needs.

-Mayer Dallal