Florida HOA not accepting FHA mortgage

7 Replies

Hi BP,

Is it true that All HOA'S in Florida are not accepting buyers with FHA loans ?

Thanks YA

You are probably confusing all HOAs with those affiliated with Condos - however, my understanding is that if you have say a building with 8 units and fewer than 4 (50%) are owner occupied then FHA may not loan on a unit. This doesn't prevent you from getting conventional financing however. I'd talk to a lending specialist for details and find out the mix of rentals vs. owner occ for the property you are looking at.

As said, it's not that the HOA's don't accept FHA, it's that any condo associations don't qualify for FHA, due to too many investors, the association simply doesn't do the certification renewal process, etc.

@Teri S. Let clarify. I have a condo for sale and the buyer wants to buy it with an FHA loan. So I eared the HOA not going to approve him.


Again, it would depend on the ownership mix for your building. BTW: this is a national rule - not just Florida; although Florida probably has a greater ratio of condos to SF than most of the country. You and your buyer really need to talk to a lender about the details. Couldn't hurt to find out if other owners in your complex are facing similar issues and what the tipping point would need to be. 

If the condo association is not FHA certified, the BANK will not approve him for his loan. Tell him to talk to his lender to see if a conventional loan can work for him, which might allow him to put down 5% instead of 3.5%.

@Yechiel Abekassis  Another issue to be aware of is if the condo is Non-Warrantable. If it has a high investor ratio, then that might be an issue. The buyer will need to find a lender that is willing to loans on non-warrantable condos.

--Upen Patel
Mortgage Banker

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