Buying a Condo with FHA Financing

One of the questions we are most often asked is how do I buy a condo with an FHA loan.  Well the simple answer is find a condo that is FHA approved.  In order to do so you will have to located condos in the area you are interested in living in that are FHA approved. 

The best way to get started is to go to the FHA websiteand search for FHA approved condos in the zip code or city you want to live in.  Once you have determined which condos in your area have existing FHA approvals, you need to become familiar with them and make a decision as to whether or not you would like to live in the community.  You can get a better understanding of the community by first driving by the condo to see it appeals to you.  Then contact the condo’s management company or Board of Directors and ask questions about the community.  Some common questions might include the following: How many units are in the community?  Does the community have security?  How many parking spaces does each condo have assigned to it?  Does the community have guest parking and how many guest parking spaces are there for the entire community? Does the condo allow pets?  Are rentals allowed? What percentage of units in the community are currently rented? One other thing you might do is ask a resident about the condo. People love to tell you all about the place they live.

Once you have determined which FHA approved condo you would like to live in you should contact your Realtor and ask him to send you information on any condos that are for sale in the building. If it turns out that there are not currently any condos for sale in the building you might want to ask you Realtor to set you up on an automatic search via the MLS to notify you as soon as  a condo gets listed in the FHA approved community. Doing so will allow you to be the one of the first to see new units as they hit the market.

After you have found the unit you like and are ready to make an offer be sure to double check the FHA status of the community with your mortgage lender.  Your lender will be able to check the FHA listing of approved condos and ensure that the community has an active FHA approval.  Once the FHA status has been double checked you are ready to make an offer through your realtor. 

The key is to  start with the knowledge that FHA loans tend to work best when used to purchase condos with existing FHA approvals. Trying to purchase a condo in a association without an existing FHA approval is often very challenging. So start your quest to purchase a condo with a FHA loan by stopping by the FHA Condo Appoval Website first.  Doing so will save you a lot of time and frustration.