Having your condo building approved is a must in this market. Typically the percentage now of FHA loans is about 40%. If your condo is not FHA approved, you are losing out on a big portion of the marketplace in search of a home! You will have to put together an application with HUD - HUD Review Approval Process (HRAP).
Here are two links to documentation of what is typically needed paperwork for this process which takes about 30 days once the information has been received by HUD:
There is also a very helpful link to Illinois' HUD that might help to further clarify any questions that you may have from the above to documents. This can be found at the following link:
You can always contact someone directly at HUD FHA Resource Division to ask specific questions. I have found them to be extrememly helpful. Their telephone number is: Tollfree: (800) CALL-FHA or (800) 225-5342
Good Luck! Please feel free to contact me directly should you have any further questions. Always happy to help.
To answer your question, your whole condo building will need to be approved and yes it does help immensely, but there are a lot of rules with condos today that you should be aware of. Before you even look at FHA - you need to see if there is a deliquency rate in your building, how many are vacant or foreclosed, how many are rented, etc. The association board also must agree and be very cooperative with the whole process, which may cost a little money from the association. I have a lender who specializes in condos and FHA and can give you all the pitfalls before you fall into them. FHA is a huge help in selling a condo - huge - but before you go down that road, you really need to know these things first. If you are selling, it is worth it to ask the questions though. Please call me if you need help or just some individual advice and the name of the lender. 888-788-9544.
Americorp Real Estate
Brokers Associate, e-PRO