New FHA Condo Rules

FHA Condo Rules Modified | More condos to be approved for FHA loans

Over the holidays FHA Condo rules were modified! Changes were made to condo policies making it easier for condos to be approved for FHA loans.

The main FHA condo rules modified are:

•Redefining “owner occupied,” streamlining the recertification process for Condo developments. Properties that aren’t strictly investor properties, such as second homes, will now be included in the percentage of units that are owner-occupied. FHA requires that 50 percent of the units in condo buildings be owner occupied in order to qualify for FHA certification. This means more complexes will qualify for FHA financing!

•A streamlined recertification process internally for HUD ( FHA) to approve condo complexes.

•Allowing more insurance options. An expansion of the types of insurance considered acceptable coverage according to FHA rules, including state-run programs and co-insurance, among others.New FHA Condo Rules


FHA is committed to making financing available for more first time homebuyers and changes to condo policies are welcomed as many first time buyers are perfectly suited to buy condos as their first home. The lower price points of condos vs. single family homes is more attractive and policies that focus on making more condos eligible for FHA financing are welcomed by first time homebuyers.

Jesse Madison is a real estate broker in Orange County, CA who is very experienced in all types of FHA loans. To get FHA Condo Rulesqualified for an FHA loan and purchase a home in Orange County, CA call Jesse at 949-306-8416 or email

These FHA Condo rules will benefit first time homebuyers and lower income buyers immensely as they looking to purchase Orange County condos. FHA offers options for traditional FHA mortgages and Rehabilitation loans including FHA 203k loans. The rehab loans allow buyers to do thousands of dollars worth of repairs to the home and finance all the costs of the repairs in the home loan with just a  3.5% down payment on the home. Call Jesse or check for more details!


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