Dad2three
Gold Member
How incorrect. There are many condo and housing developments that do not allow FHAs etc.
You're dumber than you look...
The only limit on FHA is the loan amount moron...
BZZ wrong as usual moron. Yes, FHA loans are NOT eligible in ALL Condo projects AND some single family developments!
In order for a given condo to be approved for an FHA home loan, it must be on the FHA's list of approved condominium projects.
...What criteria must a condominium project meet to be included on the "approved" list? FHA guidelines state, "to be eligible for FHA mortgage insurance, the project must have been declared and exists in full compliance with applicable State law requirements of the jurisdiction in which the condominium project is located and with all other applicable laws and regulations."
A condo project will not be designated "FHA approved" unless it has at least two units, and is covered by hazard, liability and other insurance where applicable.
..The FHA will not approve a condo project unless at least half the units have been sold prior to the FHA's endorsement of the first loan in that building.
Some properties are not eligible due to the nature of the project. For example, "condo hotels" are not allowed on FHA approved condo project list. Also forbidden--timeshares, houseboat projects or condos that feature more than one dwelling in a single condominium unit.
http://www.fha.com/fha_article?id=244