a viable option for many prospective buyers. However, not all condos are FHA-approved, and this can be confusing for buyers who don’t fully understand what these approvals mean and why some condos don’t receive the approval. In order to make a more informed decision of whether a condo is right for you, it is important to understand the reasons why some condos are not FHA-approved and the benefits that FHA approval may bring.

One of the main reasons why some condos may not be FHA-approved is due to the FHA’s stringent requirements. In order to be approved, a condo must meet certain criteria, such as:

• At least 50% of the units must be owner occupied

• An adequate insurance and reserve fund must be established

• No more than 15% of the total units can be past due in their association dues

• The budget must be adequate to cover the cost of maintenance and repairs

• A no-litigation clause is included in the sale contract

• There must be a homeowners’ association that has the authority

Article Created by A.I.