FHA Condo Loan

Thinking of buying a Condo? Do you need an FHA Condo loan?


In accordance with the passage of the Housing and Economic Recovery Act of 2008 (HERA), the Federal Housing Administration (FHA) is implementing a new approval process for condominium projects and insurance requirements for mortgages on individual units, as authorized under Section 203(b) of the National Housing Act.

FHA will now allow lenders to determine project eligibility, review project documentation, and certify to compliance with Section 203(b) of the NHA and 24 CFR 203 of FHA’s regulations. FHA will continue to maintain a list of approved condominium projects.

Lenders will be required to retain all the project legal documents, contracts, conveyances, plats, plans, insurance coverage, presale and owner occupancy conditions and other documentation in connection with their review and approval of the condominium project.


FHA Condo loan


The following documentation is required for Condo Project Approval:

  • Declaration of Condo Ownership
  • Covenants, Conditions and Restrictions (CC& R's) 
  • Articles of Incorporation
  • Adopted Bylaws
  • Ground Leases (only if not fee simple)
  • Site Plan (only if new construction)
  • General Plan of Developement (only if new construction)
  • Location Map
  • Floor Plans
  • Proposed or Actual Budget for 2016
  • Reserve Study (only if we determine we need)
  • Management Agreement
  • Fema Flood Map
  • Condo Questionnaire
  • Walls In homeowners policy
  • Master Insurance Policy
  • 2yr Budget/Financials (prefer audited, if not, need letter who prepared and association with HOA)


FHA Condo Loan


Guidelines regarding the condo development must be met.

  • The condominium project must be complete. There should be no further development plans for the project.
  • Control of the common areas of the project must have been turned over to the unit owners association for at least one year and ownership must be bound to the association.
  • The project must have adequate flood, hazard and liability insurance.
  • Individual units in the project must either be owned outright by the resident or have eligible leasehold interest. The project’s legal documents must provide for undivided ownership of common areas by unit owners and unit owners must have the right to use all facilities on an unrestricted basis.
  • The project’s documents should not place any legal restrictions on conveyance. Any provisions that seek to limit the free transferability of title are generally unacceptable. Certain governmental or nonprofit programs designed to assist in the purchase or rental of low- or moderate-income housing are exempted from the restrictions on conveyance provisions. These programs are usually involved in assisting on down payments or on rehabilitation loans or grants. 


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We recognize the importance to you of keeping your information secure and confidential. We will not sell or share your personal information.


We look forward to working with you.

Apply Now

Call us 888-958-5382


www.MORTGAGE-WORLD.com LLC is an online mortgage company specializing in FHA loans for first time home buyers.


We look forward to working with you.

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Condo not FHA Approved?


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Condo Loans are similar to loans for individual houses. Down payment requirements, credit, income and assets are the same. FHA only requires that 50% or more of the units be owner occupied.

FHA announced a policy change to address risk and strengthen finances. FHA changed the minimum credit scores for new borrowers:

  • New borrowers will now be required to have a minimum credit score of 580 to qualify for FHA's 3.5% down payment program

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