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FHA Condo Eligibility

Condominiums are great housing option as they are in a community of homes, many times connected , sometimes detached. When shopping for a condo, there are differences from detached single family homes that must be accounted for. First of all, in nearly all cases there are home ownership associations, and fees for the association. In attached condos, there are common areas that must be maintained by a separate entity – the home owners association. These include but are not limited to the roof, exterior lighting, hallways, stairwells, landscaping, elevators, security, and other amenities like swimming pools or areas dedicated to activities and sports. Be mindful as these are great to have, but they require an additional fee, even without a mortgage these fees will exist. Read more about homeowners association. When considering an FHA loan for a condo purchase, the following will be considered.


  1. There must be at least two units. There cannot be a freestanding unit deemed a condo that can qualify.
  2. Of all of the units in the project, no more than 10% can be owned by any one person.  The builder cannot keep 10% of the units for themselves, nor can any one buyer own more than 10% of the units. Projects that are newly built that have fewer than 10 units must be completed as well.
  3. All properties must be covered by necessary insurances, hazard liability, flood and fidelity if needed.
  4. Today, there are wonderful mixed use projects that have commercial and residential aspects to them.  Commercial (shops, restaurants, etc …) cannot take up more than 25% of the subject property’s square footage.
  5. No more than 15% of the total units can be late (30 days) on their home ownership association (HOA) or condo fees.
  6. For new projects, at least 50% of the total units must be sold. Agreements can be in place to show sales, and certainly occupied units count.
  7. Home ownership association (HOA) budgets must be reviewed for current liquidity and monies on hand for committed projects.
  8. At least 50% of the unit in the development must be occupied by owners, this limits the amount of rental properties that are in the development. This applies for presold units during the initial phase as well.
  9. Concentration of FHA loans in a condo development is limited in many instances to 30%.
  10. has lists that we can use to help you identify buildings that have units designated for FHA loans.

Talk to a specialist today and find out if your property qualifies