FHA Buyers- Condo Shopping? Make sure your condo is on the “approved list!”

Some big changes as of February 1, 2010 if you are a FHA buyer pursuing a condo. When considering purchasing Condos or Townhouses these project must have already been approved by the FHA and HUD. There is no exception to this rule and it is advised that you start your search for approved Condo and Townhouse projects here. Searching for Condo projects in your town is very easy and only takes a few seconds. Also keep in mind that when searching for these projects the HUD page will only display approved condo or townhouse projects in that zip code or town, so it is suggested you first make a list of zip codes you would consider living in then search for projects, then go to the list and compare.  If you do not see the condo complex you want to pursue as a home on the list, call your Realtor so they can get in touch with the condo association. If it is not on the government website, then it is a not go. FHA/HUD is not making any exceptions to the rules.

The reason they are doing this is because of the high amount of FHA loans that existing owners have in the complex & also the owner occupant ratio versus the investor (renter) ratio. Currently a condo complex must be more than 51% owner occupied. Best advice. Check the list & with your Realtor. It is not pleasant when you are half way through your home buying process and you find out after you pay all your loan fees that the condo you are purchasing does not qualify.  Or, you fall in LOVE with a condo, and then you find out you cannot get approved….do your homework! It will be well worth it.

You can check the list here