The Guidelines for FHA Condo Approval 2015

Although there are many FHA Condo Approval Guidelines, these are the basics that will determine eligibility.  These requirements are taken directly from the FHA guidelines. 


  • Right of First Refusal can be present in CC&R’s – Can not violate Discriminatory Conduct under the Fair Housing Act Regulation 24 CFR part 100
  • Commercial Space – No more than 50% of property can be used as commercial space. (NEW Sept 13th 2012)
  • All units and facilities & phases inside the project must be 100% complete
  • Delinquent Dues:  No more than 15% of units can be arrear more than 60 days. (NEW Sept 13th 2012)
  • At least 50% of total units must be sold prior to endorsement
  • Any investor/entity (single or multiple owner entities) may own up to 50 percent of the total units IF at least 50 percent of the total units in the complex are owner occupied as principal residences.  The previous limit was 10%.. (NEW Sept 13th 2012)
  • 50% of the project must be owner occupied.
  • No more than 50% concentration of FHA Loans
  • Sufficient Budget required – at least 10% of budget must go toward reserve funding
  • Insurance Coverage:
    • Master or Blanket – Must be 100% of replacement cost of condominium, not including foundation or land.
    • General Liability – insuring all common elements,  and public ways
    • Fidelity Bond – for 20 or more units.  Covers D&O and Employees that handle funds.  Must be 3 months aggregate assessments on all units + Reserves
    • Flood insurance – Required if located within 100 year flood plane. LOMA or LOMR is required
These excerpts from the FHA Condo Approval Guidelines are for informational purposes.  If you have a specific question about your condominium community and its eligibility for FHA approval please contact us.

Required Documents

To see a list of required documents for FHA Condo Approval, click here.