FHA mortgages have rapidly become one of the best ways to finance a condo purchase. Due to the fact that FHA loans are not available to all brokers and bankers, many people have heard that you cannot obtain FHA loans easily on condominiums.

In today's market, condo buyers may actually find condominium approvals easier on FHA than on conforming, or conventional, loans. In some instances, there is no additional paperwork to secure an FHA loan on a condo and you can still put little to no money down.

If you are buying in an FHA-approved condo building, there is zero work for you to do. The easiest way to check this is via the HUD FHA-approved condo list here: https://entp.hud.gov/idapp/html/condlook.cfm

If a condominium is not on that list, it is possible to obtain an FHA Spot Condominium Approval. The purpose of the FHA Checklist is fairly straightforward. It essentially serves to:

1. Confirm that the unit owner may sell at their discretion
2. Confirm that the condo association is of financial health and has no current environmental or legal liability, no pending special assessments, and has sufficient financial reserves to operate.
3. Confirm that the property values are free of undue stress such as a single-owner possessing a number of units, that there is sufficient owner-occupany, and that there is adequate maintenance to the common areas.

For the most part, the only properties that are excluded are those where there is a looming financial risk to the buyer. Many homebuyers will find that the FHA Spot Condominum Approval will approve condo associations that also passed the review of a qualified Realtor or real estate attorney.

In today's market, where condominiums may require 10% for many homebuyers on conventional loans, the FHA Spot Condominium Approval offers 0-3% down scenarios and the Seller can pay for costs, transfer fees, and rate reductions in most circumstances.