FHA-Approved Condos: The Approval Process And Where To Find Them
Author:
Carla AyersMar 28, 2024
•6-minute read
If you’re looking to build equity but don’t want to maintain an entire property, a condominium (condo) might be the perfect place to call home. One option for financing your condo is an FHA loan. FHA-approved condos can be a challenge to find, so let’s explore some tips and tricks that might help you get into your new home.
What Is An FHA-Approved Condo?
The Federal Housing Administration (FHA) is a part of the U.S. Department of Housing and Urban Development (HUD). HUD administers federal aid to local agencies that manage housing for low-income residents. The agency also backs home loans for many Americans through the FHA. An FHA loan is a mortgage insured by the FHA and issued by an FHA-approved lender.
An FHA-approved condo is a condo that can be financed with an FHA loan. In order to get approved for FHA loans, a condominium community or single-unit residence has to be appraised to meet FHA loan standards. Once the community or single unit is approved, it receives a condo ID number. Prior to 2019, an entire condominium community needed to go through the approval process. With the rule change in 2019, individual condo units can be approved as well.