Starting today, October 15, 2019, it will be possible to buy a condo using an FHA loan even if the condo project (building or complex) does not have FHA approval.
Up until now, FHA loans could only be used if the condo project was approved for FHA financing. Approved condo buildings are rare in St. Paul.
There are some rules it isn’t like you can buy any old condo with an FHA loan.
“As of October 15, FHA will insure mortgages for selected condominium units in projects that are not currently approved. An individual unit may be eligible for Single-Unit Approval under the following conditions:
- The individual condominium unit is located in a completed project that is not approved;
- For condominium projects with 10 or more units, no more than 10 percent of individual condo units can be FHA-insured; and projects with fewer than 10 units may have no more than two FHA-insured units.
Minimum Owner-Occupancy Requirements
FHA will require that approved condominium projects have a minimum of 50 percent of the units occupied by owners for most projects.
FHA Insurance Concentration in Condominium Projects
FHA will only insure up to 50 percent of the total number of units in an approved condominium project.”
If you are buying a condo and wish to use an FHA loan talk to your lender. What is an FHA loan? Short for “Federal Housing Administration” These loans require less of a down payment.
If you own a condo this means that there may be a larger pool of qualified buyers. If you would like to buy a condo you may be able to do so with an FHA loan. Feel free to contact me if you are interested in selling your condo or in buying one.