What are the general FHA eligibility requirements for condominium projects?

The guidance in this FAQ is effective for case numbers assigned on or after October 15th, 2019.

All eligibility requirements are defined in the current Handbook 4000.1.

Condominium classifications eligible for Condominium Project Approval include:

  • Existing Construction;
  • Complete Condominium Project;
  • Conversions;
    • Gut Rehab (completed)
    • Non-Gut Rehabilitation
  • Two- to Four-Unit Condominium Project;
  • Manufactured Housing; and
  • Leasehold Interest.
General Condominium Project Approval Requirements
These general requirements apply to all construction types, including Existing Construction Condominium Projects. Additional or different standards may apply for certain construction types.
To be eligible for Condominium Project Approval, the Condominium Project must:
  • be primarily residential in nature and not be intended for Rental for Transient or Hotel Purposes;
  • consist only of one-family Dwelling Units;
  • be in full compliance with all applicable federal, state, and local laws with respect to zoning, fair housing, and accessibility.;
  • be complete and ready for occupancy; and
  • be reviewed and approved by the local jurisdiction.

For more information regarding condominium project eligibility refer to:

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-02374