Lisa Barton

FHA insured mortgages are very attractive to buyers, especially first-time home buyers, because the down payment requirements (the cash you need to put down on the mortgage) are much lower than the down payment requirements for a conventional mortgage. For example, FHA requires a 3.5% down payment as opposed to the 20% down payment that’s usually required for a conventional mortgage. Many buyers who qualify for an FHA mortgage would like to buy a condominium, but not all condo communities are approved by the FHA--meaning that you can’t use FHA insured financing to purchase a home in that community. The FHA is stringent about its approval requirements. The condo community can’t be more than 50% rentals, the condo association must be solvent, and the buildings must meet FHA standards. Believe me, it can be very frustrating for buyers to fall in love with a condo and then find out that that community is not FHA approved. Your real estate agent should know which communities meet FHA approval in their local area, but you can always check out the FHA Approved Condo Link to verify the condo community you’re considering is eligible for FHA insured financing.