Are you planning on obtaining FHA financing for a condo or townhouse in Fort Collins, CO? If you are, be sure to verify that the condo you are looking at is actually approved by the FHA. You might just save yourself quite a headache. Many people do not realize that not all condo developments are approved for FHA financing. The FHA database can be searched on the U.S. Housing and Urban Development (HUD) website.
The most common reason for disqualification is a rule that requires over %50 of the units in the condominium development to be owner-occupied. Usually, if you’re pursuing FHA financing, you’re doing so to avoid having to pay a large down payment. So it’s a bummer when you find the perfect condo and then realize that you may not be able to obtain FHA financing. If you’re in this situation, I do know of one lender in Fort Collins, Colorado who writes condo loans requiring a low down payment and they get a lot of business from buyers in this exact situation.