Not all condos qualify for FHA financing. I don’t make the rules. In general to be eligible for FHA financing a condo association has to be approved and one of the criteria is a high owner occupancy rate.
In the buildings that are approved for FHA loans there are limits as to how many FHA loans are allowed in the complex.
Why FHA financing? Because FHA generally requires a lower down payment than a conventional loan and for that there are some strings attached. Ask your lender what your options are and for some advice.
Buyers who are interested in condos or townhouses might want to consider conventional financing so that they have more choices. People who own condominiums like to have the freedom to rent them out but each time a unit is rented it lowers the owner occupancy rate which can limit financing options for buyers.
Here is a link to a web site where buyers and sellers can check to see which buildings allow FHA financing. The site only works during business hours. Which is weird but probably a topic for a whole separate blog post.
great northern lofts approved
