Is Your Condo Complex FHA Approved?

Ask your condo association president or property manager if your complex is FHA approved. If you get a blank stare or a long pause, the answer is probably “No.”

FHA (Federal Housing Authority) is a government agency that insures home mortgages. It doesn’t provide money for mortgages, just the mortgage insurance. In the wake of the mortgage mess, FHA has become a major player in the mortgage insurance business, and now insures about 40% of all home loans nationwide.

For condos there’s a catch:  In order to get an FHA loan on a condo, the condo complex must first be approved by FHA. To find out if your condo complex is on the FHA approved list, go to this web site:

https://entp.hud.gov/idapp/html/condlook.cfm

If you don’t see your complex listed, it’s not FHA approved or the approval may have expired. Try searching by city or zip code, too, to be sure.

A condo complex that is not FHA approved means that 40% of potential buyers will not be able to purchase your condo.

Ask your homeowners’ association or property manager if your complex is FHA approved.

Mark Sanner, Realtor, GRI, CDPE, SFR, PhD
RE/MAX Realty Group, Gales Ferry, CT
Licenced in CT
marksanner@remax.net

Tags: colchester, east lyme, groton, montville, mystic, new london, new london county, north stonington, norwich, old lyme, preston, real estate, stonington, waterford