Whether a first time home buyer or repeat buyer, FHA loans provide so many advantages to buy a home. FHA even helps buyers purchasing a condo as a primary residence with the same benefits as a regular home. The only caveat is that the condo must report as approved on the FHA approved condo list. Thus, combining FHA benefits with low maintenance condo living can make for a very happy buyer. Primary benefits of using an FHA loan to buy a condo are:
- Low down payment
- Flexible guidelines
- Non occupying co-borrowers
- Lower credit scores
- Gift funds for down payment
- Higher debt to income ratios
- Up to 30 year term
- Purchase or refinancing available
- Down Payment Assistance possible
- Seller paid closing costs
What is a Condo Exactly?
It is common to mistake condominiums and townhomes. Actually, it is quite often for the property MLS listing to classify the property inaccurately. Even listings may lump them into a category called “townhome/condo”. Yet, condos and townhomes are not the same. Generally, a condo is a piece of real estate where the owner owns the interior of the unit plus a share of the common areas and building structure. Everything other than the interior is owned by a condo owners association (COA), also called a homeowners association (HOA). Each individual unit owner is an equal partner in the rest of the complex, including the land.
The advantages of condos is the low maintenance lifestyle. There is no yard to mow or outside maintenance. Actually, all owners share the expense of maintaining the common areas, exterior maintenance, and insurance policies. Therefore, the owners association pays their equal share of the total expenses in the form of HOA dues. This amount may be due annually, quarterly, or monthly. Furthermore, these dues are not included in the mortgage payment.
A disadvantage, when compared to townhomes, is condos must go through an approval process separately from the borrower. Conversely, townhomes are not required to go through an approval process outside of typical appraisal or inspection processes.
FHA Approved Condo List
In order to finance a primary residence condo purchase using advantages of an FHA loan, the condo must show on the FHA approved condo list. Furthermore, it must show as approved and not expired.
How to Search Properties on FHA Approved Condo List
- Click here FHA Approved Condo Search
- Search by state or city & state
- Read the tips below
FHA Condo Search Tips
There are a couple of reasons not to start a search by condominium name. Initially, is the spelling or abbreviation could be off. Also, FHA may have the condo listed by another name than the condo is known. Another tip is searching different ways. Meaning a condo complex may show under a city but it may not in the city’s county. Strange, but it happens. So, check different ways if the condo doesn’t show up.
How to Get FHA Condo Approval
After searching for a particular condo on the FHA approved condo list and it does not show, it is possible to submit for FHA condo approval. In order to submit a condo project for FHA condo approval, FHA requires specific documentation and it must be complete. Contact an OVM Financial loan officer if interested in submitting for a condo complex approved.
Are you a listing agent looking to list a condo? You need to read, “How to successfully list a condo for sale.”
Are you in the military, a military Veteran, or surviving spouse? Check out, “VA approved condos provide Veterans low maintenance living.“