FHA Condo financing requires the condo itself be considered eligible for financing by FHA.  FHA condo mortgage eligibility is determined by 1 of 3 processes:

I.   *NEW* FHA Single Unit Approvals (AKA – FHA Spot Condo Approval – Project Approval Not Required) 
II.   Pre-approved FHA Condo Verification

III.  Requesting FHA Condo Approval from FHA

The most commonly used method is verifying FHA condo pre-approval.   However, with Single Unit Approvals or FHA Spot Approvals as an option financing a condo with an FHA is now more flexible.

How do these approval processes compare?

I. Single Unit FHA Spot Condo Approvals

While specific guidelines will be made available on October 15, 2019, FHA Spot Condo approvals  do NOT require the entire project be FHA approved.  This opens up far more options for FHA buyers seeking to purchase a condo.

II. Pre-approved FHA Condo Verification

FHA maintains a public list of condo projects that are currently deemed eligible for FHA condo financing.  If the condo being financed is shown as “approved” on FHA’s approved condo list there are only a few additional items a mortgage lender must confirm for the condo to be considered FHA eligible. Contact The HOUSE Team for more information.

The FHA pre-approved condo list FHA Pre-Approved Condos

III. Requesting FHA Condo Approval from FHA

If a condo being financed is NOT on FHA’s pre-approved condo list your mortgage lender can request FHA condo approval.  FHA would review the condo project/HOA to determine if it meets FHA condo eligibility requirements.  Submitting a condo for FHA approval is a great option but may take time (process can take up to 4 to 6 weeks).

Contact The HOUSE Team if you have interest in submitting a condo project for FHA eligibility review.

The HOUSE Team Speaks “Condo”

The HOUSE Team is experienced and knowledgeable when it comes to financing a condo.  Mortgage rules and the loan process differ when it comes to successfully closing a mortgage on a condo on time without any costly surprises.  If you need an expert condo lender on your team, contact us today.

Team Phone:  602.435.2149
Team Email:  Team@JeremyHouse.com

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