How do I get my condo FHA approved?

How do I get my condo FHA approved?

Here are some common criteria that a condominium project must meet to receive FHA approval:

1. In condo buildings with at least 10 units, up to 10% of the units can be FHA-insured.
2. At least 50% of units must be owner-occupied.
3. The condo must have adequate insurance and keep at least 10% of the HOA budget in a cash reserve.

Can you buy a condo with FHA loan?

“FHA insures condominium single unit loans for up to 30-year terms to purchase or refinance a unit in an FHA-approved condominium project. Some properties are not eligible due to the nature of the project. For example, “condo hotels” are not allowed on FHA approved condo project list.

Why is it hard to get a condo mortgage?

Getting a mortgage for a condo is generally harder than getting a mortgage for a house. A condo unit is part of a multi-unit development, so the borrower’s finances are intertwined with others — and lenders see this type of home as a riskier investment.

How long does it take for a condo to get FHA-approved?

Getting a condo “FHA-approved” can take as little as two weeks or more than three months. Note that getting a condo FHA-approved is not the home buyer’s responsibility. Typically, the responsibility falls to the developer of the condo or an agent for the developer.

What does it mean if a condo is FHA-approved?

An FHA-approved condo is a property that can be purchased using FHA loans—or loans that are insured by the Federal Housing Administration.

Can I finance a condo with Quicken Loans?

If any of the conditions below apply, the condo is ineligible for financing with Quicken Loans at this time: The site contains any of the following: a houseboat or floating home, segmented ownership, a manufactured home or timeshare units.

What are the requirements for a FHA loan for a condo?

The condominium project must be primarily residential, contain at least two dwelling units and can be detached, semi-detached, a row house, a walk-up, mid-rise, high-rise, including those with or without an elevator, or manufactured housing.” That is a quote from the FHA/HUD official site.

What properties are not eligible for FHA loan approval?

Some properties are not eligible due to the nature of the project. For example, “condo hotels” are not allowed on FHA approved condo project list. Also forbidden–timeshares, houseboat projects or condos that feature more than one dwelling in a single condominium unit.

What do you need to qualify for an FHA loan?

What You’ll Need To Qualify For An FHA Loan. A minimum 3.5% down payment. A minimum FICO ® Score of 580. A debt-to-income ratio (DTI) of no more than 50% and a steady employment history. Estimate your DTI by adding your monthly debt payments (such as credit card and car payments) and dividing the total by your monthly income before taxes.