Effective 2019, it became possible to obtain FHA approvals for single condominiums within a condominium association that is not FHA approved. Such approvals are processed by mortgage brokers or lenders and are referred to as SUA approvals.

There are some rules and conditions:

• SUA is not available for new construction condominiums;
• The condominium project must have at least five units;
• At least 50% of the units must be owner-occupied;
• The number of units in the project owned by a single owner cannot exceed 10%;
• No more than 15% of all units in the project can be 60 plus days delinquent in paying their association fees;
• A maximum of 35% of the project space may be used for commercial purposes (such as offices, stores, or restaurants);
• The maximum debt-to-income ratio for the unit can be 50%;
• The minimum down payment with a credit score of 580 or more is 3.5%;
• The minimum down payment with a credit score of 500 to 579 is 10% with a maximum LTV ratio of 90%; and
• Limited gift funds are permitted. See lender for requirements.

Not all condominium associations want to become FHA approved.

FHA Loans - Benefits

FHA Streamline Refinance

FHA and VA Condominium Project Approvals

FHA Certification of Condominiums

FHA and VA Certification Disclosures

Are Reserve Studies Required by FHA?

Is Your Condominium FHA Approved?