FHA Approved Condos: How to Find

FHA approved condos offer a trade off among leasing and possessing: You expand value in a piece of property, yet you share conveniences with different proprietors and pay to re-appropriate the upkeep.

Assuming you’re hoping to purchase a townhouse, you have a few home loan choices, including a FHA advance. Simply be ready for some additional examination during the homebuying system.

What are FHA approved condos?

An FHA credit is a home loan protected by the Federal Housing Administration. These advances regularly appeal to first-time homebuyers because of their tolerant credit and initial installment prerequisites. An FHA approved condos apartment suite is any condominium unit that meets FHA advance qualification necessities.

To fit the bill for an FHA credit, you’ll probably need to meet the accompanying models:

  • FICO assessment: 500 or higher
  • Initial installment: At least 3.5% of the price tag of the townhouse
  • Relationship of outstanding debt to take-home pay: 43% or lower
  • Contract protection: 1.75% forthright premium; 0.45% to 1.05% charge yearly
  • Property: The condominium should be your main living place

How FHA approved condos functions

Assuming that you’re hoping to get an FHA apartment suite credit, the townhouse should go through an endorsement interaction. Notwithstanding, the FHA slackened its qualification necessities for condominium proprietors in 2019.

Presently, individual condominium units can be qualified for FHA credits regardless of whether the full advancement isn’t supported – a cycle called “spot endorsement.”

Here are a few normal models that a townhouse project should meet to get FHA approved condos:

  • In townhouse structures with somewhere around 10 units, up to 10% of the units can be FHA-protected. For apartment suite structures with less than 10 units, just two units can have FHA advances.
  • Basically half of the units should be proprietors involved.
  • The townhouse should have sufficient protection and keep essentially 10% of the HOA financial plan in a money hold.
  • Basically, 85% of the units should be current on their condominium levy.
  • Something like 35% of the property can be for business use.
  • At regular intervals, the townhouse project should be recertified to guarantee it actually meets prerequisites.

Pros and cons of FHA approved condos

With looser qualification necessities, it very well may be simpler for you to meet all requirements for FHA approved condos. Be that as it may, this sort of home accompanies disadvantages also.


  • They’re simpler to fit the bill for. The FICO rating and initial installment FHA approved condos are more permissive contrasted with standard mortgages. You can put down just 3.5% with a FICO rating of no less than 580.
  • The home loan may be less expensive. The middle apartment suite cost was 14% less expensive than the middle cost of existing single-family homes in November 2020, as per the National Association of Realtors.


  • You’ll need to pay contract protection. FHA approved condos should pay two kinds of home loan protection: a forthright expense of 1.75% of the credit sum in addition to a yearly charge equivalent to 0.45% to 1.05% of the advance sum. This will expand the expense of your regularly scheduled installments.
  • The contest is furious. Albeit new principles make it more straightforward to find an FHA approved condos townhouse, they’re as yet in restricted stock. There may be many other intrigued purchasers on a solitary unit, which could prompt an offering war.

While Credible doesn’t offer FHA credits, it can assist you with contrasting incredible home advance rates on standard mortgages and provide you with a superior thought of the amount you can manage. In only a couple of moments, you can see customized, prequalified rates from all of our accomplice banks.

How to find FHA approved condos

Assuming that you’ve observed an incredible condominium, you’ll need to check to assume it meets FHA approved condos. Utilize the U.S. Branch of Housing and Urban Development’s hunt apparatus to see whether the one you’re looking at is qualified.

You’ll have to know a few insights regarding the condominium advancement, including its name, apartment suite ID, city, and state.

At the point when you finish up your data in the apparatus, make certain to choose “FHA approved condos” under the “Status” drop-down menu. This way you’ll just see condominiums qualified for FHA approved condos.

Yet, there are more ways of involving the instrument as a feature of your FHA approved condos search:

  1. Finish up the data in the device. Yet, under the “Status” drop-down menu, pick “Dismissed.” In buildings that have been dismissed, you might in any case demand spot endorsement for a solitary unit. Your moneylender can work with the apartment suite relationship to record desk work.
  2. At the point when you actually take a look at the rundown of apartment suites in your space, take a gander at the “Remarks” segment. Assuming you see “Exists,” click it to peruse why the complex didn’t get FHA approved condos. At times, the issue can be fixed. For instance, the advancement neglected to incorporate a portion of the necessary desk work.

What to do if your dream condo isn’t FHA approved condos

In the event that you’re hoping to purchase a townhouse that isn’t endorsed for an FHA apartment suite credit, you can fund it through a regular home loan. These home loans can be a decent option in contrast to an FHA advance.

Nonetheless, you’ll have to satisfy guidelines for typical mortgage necessities, for example, placing down at minimum 3% on the home and having a FICO rating of something like 620.

Solid doesn’t offer FHA credits, however, we can assist you with contrasting prequalified rates for ordinary home loans. Look at the table underneath to see rates from all of our accomplice banks.