Are you looking to live in a condominium community? Do you need to use FHA financing? If you answered yes to both of these questions please take a moment to read this post. Not all condos for sale will take FHA financing, but there is a way to find out which locations do.
Thank you Jon Sigler for this very helpful information.
How Do I Find Out If A Complex Is FHA Approved? This is a great question for someone starting a search for a condo to buy. The answer to this question is important since it will likely play a key role in how you finance the condo. Having an answer is important before you go look, fall in love with a unit and then find out it will be difficult to finance. Know before you go look.
The best answer on how do I find out if a complex is FHA approved is to go right to FHA and check. They have a simple to use web site where you can check. https://entp.hud.gov/idapp/html/condlook.cfm.
My advice is to search the list by town and state or by zip code. It is the easiest way to get a positive search result. You will get a list of all of the complex’s that are and have been approved, make sure to check and make sure that there is enough time left on the approval to close on your transaction. If the complex is not listed it is not approved. Make sure you know the real legal name of the complex. There can be more than 1 page of results, click on the square arrow below the displayed results to go to the next page.
Oddly the FHA approved condo search page is not available 24 hours a day... You may find in the evening or weekends that it is unavailable, which you will not know until you have attempted to search.
FHA financing is very popular with condo buyers which is why the question “how do I find out if a complex is FHA approved” is so important. There are other mortgage options for condo buyers, but if a condo complex is not FHA approved it could indicate a problem with the association that could make getting financing in that complex hard or even impossible. Since many condo buyers are budget conscious, the limited down payment requirement (as little as 3.5% to qualified buyers) is a key positive.
One of the commenters brought up an excellent point. Check if the project is a condominium or PUD if you do not find the complex on the approved list. PUD's can look like condo's but are legally different and FHA does not require approval of PUD's. The best place to get an answer on of a complex is legally set up as a condo or PUD is to ask a lawyer or title agent. Their title insurance company can tell them what the property is with an address. Great idea Aaron, thank you for the suggestion!
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If you or someone you know is thinking of buying or selling property in Connecticut or is looking to refinance their home in Connecticut -Please give Jon Sigler, Mortgage Banker (NMLS#119288) a call at 860-306-8029. Be sure to check out Jon's website www.4fhaloan.com and his blog.
As quoted in the New York Times "A Little-Known Loan Program", and in the Hartford Courant "Moving In:Couple Combining Households Buys In Newington" and "Moving In... New Britain"
Connecticut Magazine 2013 Five Star Mortgage Professional Award Recipient
This is not an offer or commitment to lend. Articles, information and commentary are offered for informational purposes only, and should not to be relied on as legal, tax or financial advice. Consumers should retain their own legal, tax and financial professionals for such advice.