Condominiums that are approved for Federal Housing Authority purchase loans can be located by using the search tool provided on the Department of Housing and Urban Development's website. Searches can be narrowed by a number of criteria, including condo name and ID, state, county, city and ZIP code.Continue Reading
Federal Housing Authority insured home loans tend to be more complicated for condo purchases than standard house purchases, states FHA.com. While reassuring that FHA-insured loans are a viable way for buyers to purchase a condominium, FHA.com cautions that it is important to be aware of the rules.
The Department of Housing and Urban Development restricts the eligibility of condos to those circumscribed by a number of criteria. Timeshares and houseboats are ineligible, according to FHA.com. The Zillow website lists a number of other requirements. Included among these requirements are that no more than 25 percent of a condo project's floor space can be commercially zoned, and no more than 10 percent of the units in a project can be owned by a single person or investor.
The National Housing Act created the Federal Housing Administration in 1934, and the FHA was folded into the cabinet-level Department of Housing and Urban Development in 1965, according to HUD's website. Home loans are not issued by the FHA, but are rather backed, or "insured" by the agency, thereby extending borrowing ability to a wide margin of home buyers, explains Zillow.Learn more about Finding a Home