Is it possible to buy a coop or condo with a FHA loan?

Asked by Rock M., Queens, NY Sun Mar 3, 2013

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10
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Sun Mar 3, 2013
BEST ANSWER
Robyn is correct. FHA does not finance co-ops, they do finance HUD approved condos, which you can find in the HUD link I included in my response. Keep in mind that not many condos are HUD approved.

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
4 votes
Michael Denn…, Agent, Queens, NY
Tue Mar 5, 2013
FHA will mortgage approved condos. Your realtor or the managing agent of the condo will be able to tell you if the building is approved by HUD. If the building is not currently approved, it is possible to get it approved if they meet HUD's requirements. Your loan officer can initiate this process internally. FHA does not mortgage co-ops. For more information or assistance, I can be reached directly at 917.699.0183.

I value your feedback. Please hit the thumbs up, if my reply was helpful.

Michael Denniston l Cell: (917) 699-0183
Residential Home Funding, Corp.
Licensed Mortgage Loan Originator l Sales Manager
6901 Jericho Turnpike Ste. 219 | Syosset, NY 11791
Main: (516) 605-1733 | Fax: (888) 881-2557
NMLS # 24076 | Company NMLS # 34973
Mdenniston@RHFunding.com
http://www.rhfunding.com
.
2 votes
Anna M Brocco, Agent, Williston Park, NY
Mon Mar 4, 2013
Keep in mind that co-ops have their own financial requirements that must be met, therefore focus on condos, not co-ops; see link https://entp.hud.gov/idapp/html/condlook.cfm
2 votes
Amaury Piant…, Agent, Ozone Park, NY
Mon Mar 4, 2013
You can purchase a condo with an FHA loan if the condo is FHA approved. It is a bit difficult purchasing a coop with an FHA loan, it is pending on the board of the coop.
1 vote
Robyn Stefel, Agent, North Salem, NY
Sun Mar 3, 2013
You cannot buy a coop with an FHA loan and only certain condos are FHA approved (in Westchester county) hope this helps- speak to a mortgage broker for more detailed information.
Web Reference:  http://Www.robynshood.com
1 vote
Paul Welden, Agent, Scottsdale, AZ
Thu Jul 3, 2014
You can buy a co-op with an FHA loan, assuming the co-op board and seller approves it.
This is done using the FHA 203(n) program.

http://portal.hud.gov/hudportal/HUD?src=/programdescription/203n

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Paul Welden, PLLC
Exclusive Buyer's Agent

HomeSmart
3131 E Camelback Rd Phoenix, AZ 85016
480-241-0081
http://CheapPhoenixHomes.com
Web Reference:  http://CheapPhoenixHomes.com
0 votes
Another thing to remember is that even though the 203n is 'on the FHA books' is may not be active and most (if not all lenders) won't originate/fund these loans.
Flag Thu Jul 3, 2014
Gina Pogol, Home Buyer, Reno, NV
Wed May 28, 2014
What about the FHA 203(n) program? HUD says it's for co-ops. http://portal.hud.gov/hudportal/HUD?src=/programdescription/203n
0 votes
Another thing to remember is that even though the 203n is 'on the FHA books' is may not be active and most (if not all lenders) won't originate/fund these loans.
Flag Thu Jul 3, 2014
It's very scary how many other Realtors and Lenders give out incorrect information.
But one thing to consider is that even though FHA offers the 203(n), there may not be any or many lenders that are willing to do them.

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Paul Welden, PLLC
Exclusive Buyer's Agent

HomeSmart
3131 E Camelback Rd Phoenix, AZ 85016
480-241-0081
http://CheapPhoenixHomes.com
Flag Thu Jul 3, 2014
Yes, Gina. You are correct that the FHA 203(n) can be used to buy/finance Co-ops.

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Paul Welden, PLLC
Exclusive Buyer's Agent

HomeSmart
3131 E Camelback Rd Phoenix, AZ 85016
480-241-0081
http://CheapPhoenixHomes.com
Flag Thu Jul 3, 2014
Anu Dutta, Agent, Forest Hills, NY
Tue Mar 12, 2013
Usually the new condos are FHA approved, not the co ops. Please consult with your brokers and check the offering plan.
0 votes
Maureen Mizu…, Agent, Ozone Park, NY
Sun Mar 3, 2013
In the condominium environment, it is possible to fund the purchase with an FHA loan. There are other options such as fannie mae and freddie mac. FHA rules governing the purchase of condo's are more strict than either freddie or fannie.
In the co-op environment however in the state of New York, there is usually a requirement of at least a 20% downpayment sometimes higher. Therefore, a conventional loan would be used. Also, co-ops have to be "appproved" by fannie mae to be eligible for financing a mortgage loan on a co-op.
0 votes
Mark Fisher, Mortgage Broker Or Lender, Bronx, NY
Sun Mar 3, 2013
You can buy a condo with an FHA loan as long as the building is FHA approved. You can't buy a co-op with an FHA loan.
0 votes
Flag Wed May 28, 2014
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