Yes, the 203(b) program insures lenders against losses for FHA mortgages secured by a unit in a condominium project building, for mortgage terms up to 30 years. The condominium project must be approved for participation under FHA guidelines.
Generally, projects must contain at least two dwelling units; can be detached, or semidetached, a row house, a walk-up, or an elevator structure. The loan is made by an approved FHA lender, such as a mortgage company, bank, or savings and loan association, and is insured by FHA which is part of HUD. Any creditworthy potential owner-occupant who meets FHA underwriting criteria and will make the condominium unit their principal residence is eligible for a mortgage insured under this program. There are additional owner-occupancy restrictions for insured condominium loans.
To find out if a particular condominium project is FHA approved, visit the following HUD website: https://entp.hud.gov/idapp/html/condlook.cfm
To locate an FHA approved lender go to: https://www.hud.gov/program_offices/housing/sfh/lender/lenderlist
For more information regarding condominium projects refer to:
- the FHA Condominium Mortgage Insurance Page https://www.hud.gov/program_offices/housing/sfh/ins/sfh_ins_condominiums
- Mortgagee Letter 2011-22 and Attachment(s) and Mortgagee Letter 2012-18 https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee