Airbnb and FHA Condominium Approval

Mortgage and Lending with ReadySetLoan Condo Team LLC

Airbnb and FHA Condominium Approval

fha condo approval airbnbOne of the topics on HUD’s agenda for the roundtable session last month was that of “Airbnbs”.  I have to admit that even with all of the condominiums that we have worked with, this was a new concept for me.  None of the legal documents of our condominium clients had any such language in them.

In case this is new to you, Airbnb is when unit owners allow overnight guests or trading of units on a temporary basis.  We understand that this is more common in areas where unit owners can provide an alternative to hotels in resort areas or for large events such as a university graduation.

Airbnb is a topic for discussion for HUD because this falls into the category of transient leasing, which is prohibited by the National Housing Act.  A home, whether it be a single family home, 2- to 4-family home or condominium unit, may not allow leasing for a period of less than 30 days.  Therefore if the condominium consists of Airbnb units, the project is not eligible for FHA project approval or FHA-insured loans.

The obvious dilemma here: how can it be determined if unit owners are offering their units in this manner?  This is what HUD has to consider and I would expect an official notice on this topic to be released in the near future.

HUD had a similar issue when it was reviewing transient leasing back in 2013.  It ruled that if the documents are silent or have a minimum leasing term of more than 30 days, it was eligible.  If the legal documents had a minimum leasing term of less than 30 days or provided exemptions to the minimum leasing period, the condominium may still be eligible for FHA approval but would require additional paperwork.


Top Photo Credit: (c) Can Stock Photo / urose

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The Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their approvals with FHA and the VA or become recertified with FHA.  We have assisted nearly 200 condominiums and we can help your association.


ReadySetLoan is an active member of the Connecticut and New England chapters of the Community Associations Institute (CAI) and is a frequent contributor to Common Interest Magazine as an expert in FHA/VA condominium project approvals.


Please contact us with any questions regarding FHA or VA condominium project approvals.  You can email me at or call me at 404-433-4565. I will be happy to answer any of your questions.


FHA/VA Condo Approval Specialist

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Comments (3)

Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Eric Boucher AirBNB has problems. I'm not sure it will survive, but the concept of renting out second homes by the week is just going to get bigger and bigger. Condo HOAs are generally hostile to this, however, it will increase. And who is going to tell FHA that they are renting out their unit?

Bill Roberts

Sep 24, 2015 02:12 AM
ReadySetLoan Team

Exactly, Bill.  That is why FHA took this straightforward approach.  It's almost impossible to try to figure it out so just go by what the documents say

Sep 24, 2015 02:17 AM
Brandon Jordan
ERA American Real Estate - Crestview, FL

Many unique properties are turning to posting on AirBnb, with billions of dollars in valuation on the company, dont know that its going away.

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