Does the condo need to be FHA approved?
Yes — either the whole project is on the FHA-approved list, or the unit has to pass single-unit (spot) approval at the time of the loan.
What this actually means.
Single-unit approval requires project-level documentation: budget, reserves, owner-occupancy ratio, insurance, litigation status. Not every project meets the criteria.
Where this can move.
Project FHA-approval status, owner-occupancy ratio, project insurance and reserves, litigation, and single-unit (spot) approval criteria can change the answer.
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More FHA questions on Condos.
Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.