If a condo is not FHA approved, you cannot use a standard FHA loan to buy it, but you may still have options. Depending on the building and your finances, a conventional loan, a VA loan, or an FHA single-unit approval may work. The first step is to check the building before you make an offer.

What "FHA approved" means for a condo

FHA only insures loans on condos in buildings that meet its project standards. These cover things like owner-occupancy levels, how many units are delinquent on dues, and the health of the association's finances. Buildings that qualify are listed as approved, and some individual units can be reviewed separately.

Step one: check before you offer

  1. Ask your loan officer to look up the building's FHA status.
  2. Ask the association for its budget, reserve information and owner-occupancy numbers.
  3. Find out whether the building has pending lawsuits or special assessments.

Options if the condo is not FHA approved

  • Conventional loan: many condos that do not meet FHA rules can still qualify for conventional financing, which has its own project review. You may need a higher down payment than FHA.
  • FHA single-unit approval: in some cases a single unit in an unapproved building can be reviewed and approved. Eligibility depends on the building.
  • VA loan: eligible veterans can use VA financing on condos in VA-approved projects. See our guide to VA loans in New Jersey.
  • Other programs: some lenders offer financing for condos that do not meet standard project rules. Rates and terms vary.

Why a broker helps

Each lender reviews condo projects differently. A broker can check your building against many lenders and programs and tell you quickly whether the deal can work. See our condo approval guide and the article on what to do after a mortgage denial.

Frequently asked questions

Can I still buy if the building is not approved?

Often yes, with a different loan program. Check the building first so you do not lose time or your contract.

How long does condo approval take?

It depends on how quickly the association provides documents and which program is used. Ask early.

Call (732) 754-7474 or ask us to check a condo →

Project eligibility rules are set by FHA, VA, Fannie Mae, Freddie Mac and individual lenders, and change over time. JahnLends is the Woodbridge, NJ branch of AMS Mortgage Services, NMLS# 145742. Equal Housing Opportunity. For information purposes only. This is not a commitment to lend or extend credit. All loans are subject to credit approval. Other restrictions may apply.