Learn Everything You Need to Know About FHA-Approved Condos

Cons

 
  • Mortgage insurance is required: While your upfront and monthly payments are often lower than if you purchased a home, FHA loans have additional fees. You must pay 1.75 percent of the loan amount up front and an annual charge ranging from 0.45 percent to 1.05 percent of the loan amount to cover mortgage insurance costs.
  • It’s an adversarial process: FHA-approved condos are in high demand, but even those with less strict requirements are in short supply. Other buyers are likely interested in the apartment you’re considering, which can drive the price considerably above the asking price.

How can I find out whether my condo is FHA approved?

On their condominiums search tool page, the HUD maintains an online database of all FHA-approved condos, which is the quickest and easiest way to determine whether your condo is FHA approved.

Whether you’re looking for a condo you already own or one you want to buy, be sure the status is set to “approved.”

This ensures that all of the condominiums in your search results are FHA-approved.