Planning to buy a condo with FHA or VA financing? Find out which ones are approved!


Ims712-350balconiesDid you know that not all condos are approved for FHA or VA financing? That's right… in order to qualify for FHA/VA financing a condomimium project must be on their pre-approved list. If these are your only financing options, be sure to find out if a condo is FHA/VA approved before falling in love with it!

MLS listings are supposed to state whether or not a project is FHA/DVA appproved, but it is not included in all listings… and even if included, information is not always accurate. Some listings state they are approved when in actuality they are not.

Best to check for yourself…

Underwriting is also getting more picky in approving condominium projects with conventional financing.

Some potential red flags…

  • Multiple units owned by the same investor
  • Multiple units delinquent on association dues
  • High percentage of rental units
  • Law suits
  • Commercial use
  • Inadequate insurance
  • Inadequate reserves

Be sure to check with your lender for condominium requirements early in the process. I have seen some instances where a 25% down payment removes all examination of the complex. If project reivew is required, ask your lender to request and review the 'condo questionnaire' as soon as possible.

Also be aware that some properties that look like townhouses are considered condos for financing purposes… it depends on the legal description.

Sharlene Hensrud, RE/MAX Results – EmailMinneapolis – St. Paul Condo Realtor

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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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