Customers looking to purchase a condo using FHA financing should be aware that there are specific FHA requirements for all Condos. HUD/FHA requires that a condominium project be approved prior to issuing an appraisal or completing financing. There are many condo projects that are already FHA approved.
Click here to go to HUDs search for FHA-approved condominium projects. You can search by location, name, or status.
If the condo you're interested in is already FHA approved, FHA financing should be available for FHA qualified customers. If the condo you're interested in is NOT already FHA approved, the property may still qualify for a Spot Condo option. The Spot Condo program has very strict criteria, but is designed for projects that have not previously been approved by FHA and where there is little likelihood that the project’s homeowners’ association would make the required changes to its legal documents to obtain FHA approval. In this case, the HOA must provide certain documentation and answer specific questions to confirm they meet the requirement for the Spot Condo option.
So if you're planning on using FHA financing to purchase a condo, make sure your first step is knowing if the condo project you're interested in is FHA Approved!
