December 2, 2010
There are many types of FHA home loans. Depending on your needs, you may find a traditional FHA mortgage is the best choice, but there are energy efficient mortgages, FHA 203(k) loans, FHA loans for manufactured homes and many others.
For those searching for an FHA loan for a condominium unit, the process is a bit more complex than for a suburban home but FHA condo loans are definitely a possibility.
The FHA requires condominium projects to be FHA approved before they will be processed for loans on individual condo units. The FHA provides an online condo search tool that helps FHA borrowers locate condos that have FHA approval or are pending approval.
Buyers can search by state, city, even by the name of the condo itself. The search tool allows users to filter their searches to display only those condominiums which already have FHA approval–a feature that can be a real time-saver for those not familiar with a particular neighborhood.
Buyers can also search for condos approved before current approval conditions were put in place. From the FHA official site:
“A search can be made for condominium projects that were approved using the new HRAP/DELRAP method or the former approval process (pre-HRAP/DELRAP). The condominium project identification numbering differs between the two methods, among other things.”
Searching for an FHA approved condo is more effective when the house hunter is pre-approved for an FHA home loan amount–if you find the right unit but don’t have pre-approval, you may miss out on purchasing that particular unit while the application process is underway.
There’s no guarantee for or against in such situations, but those shopping for a condo with a pre-approved FHA loan amount can look specifically for what they know they can afford instead of waiting for approval on the amount they’d like to borrow.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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