FAQs About Buying a Condominium
Q: What qualifies a property as a condo?
A: A condominium, often shortened to condo, is a type of real estate divided into several units that are each separately owned, surrounded by common areas jointly owned. The common areas, amenities and utilities are managed collectively by the owners through their association, such as a homeowner association.
Q: How do I know if a condo is approved for FHA financing?
A: In order for a given condo to be approved for an FHA home loan, it must be on (or added to) the FHA's list of approved condominium projects. FHA publishes a searchable list of approved condo projects on its website. You can use the search tool on this page to find condo projects that are on the FHA approved list.
Q: How do I get financing for a non-warrantable condo?
A: A non-warrantable condo is a condominium property in which the loan is not eligible to be sold to Freddie Mac or Fannie Mae, and as such, mortgage financing for this type of property is considered by most banks to be more “risky.” There is still alternative financing options available through Rob Tennyson.