FHA Condo Loan
Buying a condo with FHA? The project usually has to be on FHA’s approved list, and FHA checks how many units are owner-occupied, behind on dues or owned by one investor.
Quick answer
Saxton Mortgage does. At least one FHA program we offer finances low-rise and high-rise condos in FHA-approved projects, and at least one accepts site condos. At least one program does not accept single-unit approvals, and condotels are not eligible on it.
What an FHA condo loan requires
Each item below is an FHA rule from HUD Handbook 4000.1 or a requirement of at least one FHA program we offer.
- A condo project on FHA’s approved list when the FHA case number is assigned.
- At least 35 percent of the units owner-occupied. Units owned by the builder or developer do not count.
- No more than 15 percent of the units more than 60 days behind on association dues or special assessments.
- In projects with 20 or more units, no single owner holding more than 10 percent. In smaller projects, no owner with more than one unit.
- A master hazard policy for the whole project, plus your own walls-in (HO-6) policy if the master policy does not cover the interior.
- A completed condo questionnaire, form HUD-9991.
Approved projects first
Site condos qualify
Owner occupancy counts
Dues must be current
Walls-in coverage
Streamlines skip approval
Can You Get An FHA Loan On A Condo?
Yes, in an FHA-approved project. Site condos also qualify, and FHA streamline refinances do not need project approval.
Yes. FHA insures loans on condo units in approved projects, on units that meet FHA’s definition of a site condominium, and on units given a single-unit approval. At least one FHA program we offer requires the unit to be in an FHA-approved project, does not accept single-unit approvals and does not accept projects approved through the lender review process, so we check how the project was approved, not just whether it is listed.
FHA also looks at the project as a whole. At least 35 percent of the units must be owner-occupied, no more than 15 percent can be more than 60 days behind on dues or special assessments, and in projects with 20 or more units no single owner can hold more than 10 percent. FHA may also stop issuing new case numbers in a project where FHA-insured loans exceed 50 percent of the units.
Some loans skip the approval step. FHA streamline refinances and HUD-owned homes do not require condo project approval. Condotels and hotel condominiums are not eligible under at least one FHA program we offer, and that program allows a project in minor litigation only with underwriter approval under FHA rules. If the project is not FHA-approved, see our condominium loan page.
Why choose Saxton for an FHA condo loan
This page is for buyers looking at a condo with an FHA loan.
Approval Checked First
We confirm the project is on FHA’s approved list, and how it was approved, before you get far into the deal.
Site Condos Qualify
Units that meet FHA’s site condominium definition are eligible with at least one FHA program we offer.
High-Rise Or Low-Rise
Both low-rise and high-rise condominiums can qualify if they are FHA eligible.
Owner Occupancy Matters
At least 35 percent of the units in an approved project must be owner-occupied.
Walls-In Coverage Needed
If the master policy skips the interior, you need your own HO-6 policy.
Streamlines Skip Approval
An FHA streamline refinance does not need condo project approval.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about buying a condo with FHA.
Saxton Mortgage does. At least one FHA program we offer finances low-rise and high-rise condos in FHA-approved projects, and at least one accepts site condos. At least one program does not accept single-unit approvals, and condotels are not eligible on it.
In most cases, yes. At least one FHA program we offer requires the unit to be in an FHA-approved condominium project and does not accept projects approved through the lender review process. FHA checks the approved list when the case number is assigned. Site condominiums and HUD-owned homes are the main exceptions.
FHA has a single-unit approval process for units in projects that are not approved, but at least one FHA program we offer does not accept single-unit approvals. Ask us before you write an offer on a unit in a project that is not on the list.
At least 35 percent of the units in an approved project must be owner-occupied. A unit owned by the builder or developer is not counted as owner-occupied.
Yes. No more than 15 percent of the units can be more than 60 days past due on association dues or special assessments. Late fees and administrative charges are not counted.
There are limits. In projects with 20 or more units, no single owner or related party can hold more than 10 percent. In projects with fewer than 20 units, an owner may not own more than one unit.
The association needs a master hazard policy covering the full insurable replacement cost of all units and common elements. If that policy does not cover the inside of your unit, you need your own walls-in HO-6 policy.
Yes. FHA streamline refinances do not require condominium project approval. If the project has an FHA Condo ID, the lender enters it when the case number is requested.
Find out what you qualify for
Send us the condo address and we will check the project’s FHA status before you make an offer.
Get Pre-Qualified- U.S. Department of Housing and Urban Development, FHA and housing resources
- U.S. Department of Housing and Urban Development, FHA mortgage insurance premiums
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.