The Federal Housing Administration, an office Inside the U.S. Department of Housing and Urban Development, insures mortgage loans for qualified borrowers. HUD has specific criteria for guaranteeing a loan used to buy a condominium unit. The complex has to be HUD-certified–which means it meets a list of conditions, available on HUD’s web site. In case you have discovered a condo that you’d like to get, you first have to determine if the unit qualifies for the FHA-backed loan, before employing using a creditor.
Eliminate the condo from consideration if it’s a unit in a condominium hotel, a timeshare or a houseboat condo. The condo also doesn’t qualify for the FHA loan when there is more than one dwelling per unit or when the condo isn’t in a residential complex. The FHA will not insure mortgages on any of these kinds of condo complexes.
Stop by the HUD Condominiums website listed in the Resources section. It is possible to search for the complex from the state, city, zip code or title. Utilize the”Status” drop-down menu to ascertain if the complex is presently approved or pending approval, or if it was rejected or removed in the approval process.
Call your creditor to double check the accuracy of the information you found on HUD’s web site. She could have a more recent list of all FHA-approved complexes.