Work with a LOCAL mortgage broker! The official "list" of FHA-approved properties is limited, and often out-dated. Your mortgage broker can "spot-approve" a condo for you, if provided with the various condo docs and financial info needed. A good local Realtor might have knowledge of a recent "spot approval", or could do some extra research for you, such as check public tax rolls to see what percentage of a building's units have liens, tax certificates, and/or "lis pendens" filed against them, to gauge the financial strength of a building, which might make it a good candidate for a spot approval.

In addition to the "financial distress" factor, many of the older condos in Miami area (and Florida) have covenants that allow the condo assn the "right of first refusal" on the purchase and sale of a unit in their condo building. Probably originally designed to prevent sagging values if one of the owners had to "dump" their unit, this clause could allow the other unit owners to band together and purchase it at a "fair market value". However, the FHA considers this clause to be potentially discriminatory. Newer condos probably do not have this wording in their documents, and some older condo associations are starting to address this issue, and are taking the legal steps to remove it from their docs.

Here's a direct link to FHA's website: https://entp.hud.gov/idapp/html/condlook.cfm

However, there are very few condos now approved and older buildings which might have been approved before, may need to get re-approved if they haven't been evaluated in the last few years (I'm not sure I remember the cut-off).

As suggested before, you must consult a lending professional who is approved for FHA loans. Also, there is a way to get what is called a 'Spot Approval' and you will need to consult with an FHA approved lender (you can find them at http://www.HUD.gov).

The reason for all the re-approval mayhem is simply - financials. There are guidelines under which lenders must watch for before lending in a particular condo such as: how many units are non-owner occupied, weather there are reserves or not, how many unit owners are current and behind in their maintenance payments, how many units are in foreclosure, etc.

As complicated as it may seem, it is all really to protect you as the borrower (and of course, the lenders themselves are looking to loan in financially solvent buildings), so that you are not stuck in a building which may end up in receivership.

Buildings in financial distress run the risk of going bankrupt (the association), which may lead to loss of utilities, foregone maintenance (which lets your investment to deteriorate, loosing value), and may require fees and assessments for all other paying owners to share the burden.

All the best. Remember: Luck, is When Preparation Meets Opportunity. Seek good opportunities but don't evaluate your purchase on price alone. There are other considerations which may ensure a 'lucky' outcome.

Steve,
I would suggest speaking with a Bank or Mortgage pro.
Realtor Rick.

Hi Steve,

Condo FHA loan approvals can be made on condominiums outside of the HUD list. A qualified mortg. broker
can guide you through the process. First a form "limited review condominium questionaire" is filled out by the association and the information is processed for submittal to HUD for approval.

Best,

Joe

Go to http://www.hud.gov and do a search for FHA approved condos. You can search by county or state, or if you have a particular development in mind you can search by name