Lately, a lot of people have been asking me the same question: If I’ve been approved for an FHA loan, can I buy a condo?
The short answer is maybe. We need to make sure the condo association has been approved for FHA financing.
To find out whether a specific condo association has been approved, you can ask your lender or agent or find out yourself by using the online tool I’ve linked right here.
So, why might a condo association not be approved for FHA? This can actually be the case for a number of reasons. A condo with a certain number of renters, for example, could impact eligibility.
Condo associations can also lose eligibility if they don’t have sufficient reserves to cover potential repair work. Also, sometimes associations simply forget to renew their eligibility. In any event, it’s important to make sure the property you’re purchasing and the loan type you’re using will work well together.
For example, sometimes townhomes and single-family detached homes are in condo associations. So, the same concerns that apply to condos would be considerations for these properties, as well.
It’s also very important not to assume that information you find online is correct. A listing may say a certain type of financing is allowed, but I always recommend double-checking with your real estate professional.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.