Guideline answers · FHA

FHA · Property

Can I get an FHA loan in a condo that is not FHA approved?

Yes, through single-unit approval, if the project is not already FHA approved. The loan needs a TOTAL Accept or, if manually underwritten, 90% LTV or less; the project needs at least five units and at least 50% owner occupancy; and FHA concentration is limited to 10% of units in projects of 20 or more, or two FHA loans in smaller projects.

Checked against the sources below on October 29, 2026. Reviewed by Chris Black, NMLS 275073, on November 2, 2026.

The rules

• The project must not be on FHA's approved list when the case number is assigned.
• Borrower: an Accept from TOTAL, or a maximum 90% LTV if manually underwritten.
• Project: a certificate of occupancy for all units, and the subject unit's issued at least a year ago or the unit previously occupied; at least five units; not a manufactured home; no ineligible characteristics; complies with the free assumability rule (24 CFR 203.41).
• FHA concentration: above 10% of units in a project of 20 or more units, FHA may stop issuing case numbers. A project of fewer than 20 units may have no more than two FHA-insured loans.
• Owner occupancy: at least 50% of the total units.
• The lender submits a completed, signed and dated form HUD-9991. If the case number request lands in Holds Tracking, the HUD-9991 information goes to the FHA Resource Center.

Watch for

• Reflects HUD Handbook 4000.1 Update-18 sections effective November 10, 2026. Case numbers assigned before then follow the prior text.
• HUD's 2019 rule set the concentration cutoff at 10 units; the current handbook uses 20. Follow the handbook.
• The Condominiums section is dated 11/10/2026 in Update-18, which changed the case number procedure. Check the section's insurance and financial requirements before you order the case number.
• Lenders can decline single-unit approval or add overlays. Confirm yours offers it.

Sources