(Spot The Target Dog)
FHA-approved condominium projects
When buying a Condo that requires FHA financing, the condo must meet certain strict requirements in qualifying for the Government Based FHA loan product.
The Standard Rule is that the Condominium Project must adhere to at least having 51% of the owners being owner-occupied in order to qualify for FHA financing.
Now if the Condo Project is just being built and has many stages of being built in the future then you can exception in Stage Development that requires case by case approval.
https://entp.hud.gov/idapp/html/condlook.cfm
Condos that are not approved
So what happens to the Condos that are not approved, can you still get FHA financing for them?
Just because the condo project is not on the approved list does not mean they are never to be approved. Verify with the Condo Association to see if 1st they have over 51% owner-occupied then have the lender put in the necessary paperwork to get approved.
Be aware this process may take up to 6 months!!
FHA Spot Condo Approvals
So what if there is a condo project with less than 30 units?
I just had a client looking to buy a condo with only 5 units in the association. We could still do the FHA financing if there is at least 20% of the owners who have an FHA financing already.
This approval process is considered Spot FHA Condo Approval.
It is really cool because we only needed 1 owner with a FHA loan and we didn't need to submit the paperwork to get this association approved because there is less than 30 units in this Association.
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