FHA APPROVED CONDOS

FHA APPROVED CONDOS

FHA APPROVED CONDOS

FHA or Federal Housing Act approved condos refer to any condo development that is in compliance with state laws and regulations. Some condominiums, such as site condominiums are pre-approved for FHA loans and do not require project approval. There are literally thousands of FHA approved condos throughout various US states. Properties that are ineligible as FHA approved condos are:  condo hotels, timeshares, houseboats and any other property not being used primarily as a place of residence.

There are a number of ways to find out if a condominium is an FHA approved condo. If you have found a condo you are interested in purchasing you can speak to the HOA or the management company. Since each building has to apply for FHA approval the HOA would know if the condos in its building are FHA approved condos. You can also speak to a loan representative at the bank. Lenders have access to databases that will tell the status of many properties, including if they are indeed FHA approved condos. You can also do on-line searches for this information as well. However, these searches may prove to be unreliable as the information may not be current. The most up to date information can be obtained from lenders or HOA’s.

The best way to go about the process of finding FHA approved condos is to look at condos in your price range. Once you have narrowed your search down to a few condos in your price range, pay the HOA for visiting each of them. They will be able to let you know if the condo you want is an FHA approved condo or not. By doing things this way you will already be one step ahead when visiting your lender regarding a loan for the property. Just remember FHA approved properties need to be inspected.