FHA Condo Loan

FHA World -  FHA Condo Loan

FHA World -  FHA Condo Requirements

• 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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