Get Mortgage Quotes
New Articles - Oct '09
- Fannie Mae's Deed-for-Lease program
- When you're behind on mortgage payments
- Removing negative items from your credit report
- Mortgage advice for first-time home buyers
- The truth about free credit reports
- What is an interest rate cap on ARM loans?
- When do lenders check my credit score?
- Tax credit program may be extended soon
- Refinancing help for upside down mortgages
- What FICO score is needed these days?
- How to compare home loan offers
- Mortgage rejection and how you can avoid it
- Getting the best deal on a mortgage loan
- Beginner's guide to buying real estate
FHA Home Loans >> Buying Condos
Can I Use an FHA Mortgage Loan to Buy a Condo Unit?
by Brandon Cornett
Can I use the FHA loan program to buy a condo, as opposed to a traditional house? Yes, if the condominium in question meets certain guidelines set forth by the FHA, then you could use an FHA mortgage loan to pay for the condo unit. Additionally, the buyer must meet certain underwriting guidelines in order to be approved.
Here are some of the guidelines required for both the condo and the person buying it:
The Condominium -- The condo unit in which you want to live generally needs to have at least for dwelling units total. These condos themselves can be detached or semi-detached. They can also be row-house types of structures, or walk-up units. To learn more about the structural requirements for condominiums, visit the FHA website and do a search for that key phrase.
The Buyer -- As you may already know, you will need to have a certain credit score, a certain level of income relative to the loan amount, and other qualifying factors in order to get an FHA loan for a condo purchase. You must also apply for the loan through an FHA-approved mortgage lender. You can find a list of these lenders in your state through the Federal Housing Administration's website.
Using FHA Loans for a Condominium Purchase
For the most part, using an FHA loan to buy a condominium / condo unit is the same as using it to buy a house. Most of the key provisions of this program work the same, regardless of whether you are buying a traditional home or a condo-style property.
In closing, I would like to stress the fact that the FHA does not offer financing directly to consumers. Instead, this government organization insures the mortgage loans made by primary lenders -- such as a mortgage companies, banks and credit unions. As a result of this government backing, the primary lenders are more flexible with their approval process. So it's generally easier to qualify for an FHA loan than a regular loan without government insurance behind it.
This article answers the question: Can I buy a condo using the FHA home loan program? If you would like to learn more about this topic, please refer to our Q&A library.
If you are ready to move forward in the purchase of a condominium, and you would like to apply for an FHA loan for that purpose, please see our mortgage quotes page. The link provided on that page will allow you to get offers from FHA-approved mortgage lenders. It's a good way to get the ball rolling, and to find out if you qualify for a condo purchase under this program.
