I would also add - if you aren't already working with a Buyer's Agent, I would recommend getting one soon. They can refer you to local lenders who are the real experts on the lending guidelines set forth by the FHA.

If you like I could refer you to a mortgage lender with Wells Fargo and her office is right down in the South End. Contact me if you'd like her information.

Good luck and have fun on your purchasing journey! If I can help in any way, please let me know.

--Tim

I agree! Great answer, Cynthia. The only thing I can add is that Mark, you can look up addition information for yourself at:

http://www.fhaoutreach.gov/FHAFAQ/

and perhaps this might help too:

https://entp.hud.gov/idapp/html/hicostlook.cfm

Thumbs up from me,Cynthia! Great answer!

Buying a Condo using an FHA Loan

HUD Section 234(c) of the National Housing Act provides authority to insure any mortgage covering a one-family unit in a project coupled with an undivided interest in the common areas and facilities which serve the project. The project may include dwelling units in detached, semidetached, row, garden-type, low- or high-rise structures. Generally these types of properties are referred to as Condominiums.

HUD will insures mortgagees against losses on mortgage loans used for buying a condo or to refinance individual units in eligible condominium projects provided that they meet certain guidelines.
A. Project Eligibility. The condominium project must be on HUD's approved condominium list.
B. Applicant Eligibility. Eighty percent of the HUD-insured mortgages in a condominium project must be the principal residence of the owners (owner-occupants).
C. Maximum Insurable Mortgage: Same as Section 203(b) (except that the mortgage amount must be in multiples of $50).
D. Minimum Investment: Same as Section 203(b).
E. Mortgage Term: Same as Section 203(b).
F. Mortgage Insurance Premium: Monthly+Upfront MI of 1.5%
G. Refinancing: Same as Section 203(b).

If the Condominium is not approved then the Lender may go through the "Spot Approval" process.