If you are buying a condominium with FHA financing or a VA loan, the condo project itself may also need to meet FHA or VA requirements.
The good news is that finding out whether a condo may qualify is usually something we can help determine early in the process.
How Do I Know If a Condo Is FHA Approved?
FHA maintains an online database where you can search for condominium projects by location, project name and approval status.
Search HUD’s FHA-Approved Condominium Database
When searching, it helps to know the condominium project’s official name as well as the city, state or ZIP code. Be sure to review the project’s current approval status and expiration date.
If the project is already FHA approved and the approval is still active, that can make the process more straightforward.
However, if the condo is not currently on the FHA-approved list, that does not automatically mean FHA financing is impossible. The unit may still be eligible for FHA financing through Single-Unit Approval if FHA’s requirements are met.
How Do I Know If a Condo Is VA Approved?
The Department of Veterans Affairs provides an online Condo Report where you can search for condominium projects and check their VA approval status.
Search the VA Condo Approval Database
You can search using the condominium name and location. The VA search also allows you to limit the results to approved condominiums. It often helps to search using only part of the condominium’s official name if you are having trouble locating it.
If the project is listed, review its status. A project showing “Accepted Without Conditions” is VA approved.
If the condominium project is not already VA approved, additional documentation and review may be required before the project can become eligible for VA financing.
What If the Condo Is Not Currently Approved?
The answer depends on the type of financing.
For FHA financing: the unit may still qualify through FHA Single-Unit Approval if the project and unit meet the applicable requirements.
For VA financing: the condominium project generally must receive VA approval before the unit can be financed with a VA loan.
In either case, it is important to investigate the condo project as early as possible, ideally before making an offer or during the initial contract period.
What Information Is Helpful When Checking a Condo?
When asking us to check a condominium project, it helps to provide:
- The full property address
- The condominium project or association name, if known
- The city, state and ZIP code
- The listing or property information, if available
With that information, we can help determine whether the project appears to be approved, whether additional review may be required, and what the next steps should be.
Why Condo Approval Matters
Condominium financing involves more than simply qualifying the borrower. The lender may also need to review the financial health, insurance, legal structure and overall condition of the condominium association.
This is one reason it is helpful to work with a mortgage professional who understands condo financing and can identify potential approval issues early in the transaction.
Questions About an FHA or VA Condo?
If you are considering buying a condominium in Maryland, Washington DC or Virginia and are unsure whether it qualifies for FHA or VA financing, we are happy to help you check the project and review your financing options.
Have questions? Contact us here, or call (240) 670-5090.
Ready to explore your mortgage options? Pre-Qualify Here.
FHA and VA condominium approval requirements are subject to change and may depend on the specific project, unit, loan type and lender review.
