Good-Bye Spot Approvals...
Prior to February 1, 2010 it was fairly easy to get approved for an FHA loan in a condominium community that was NOT FHA approved.  All the lender needed to do was get a "Spot Loan Approval" and as long as certain conditions were met the property could qualify for FHA financing.  Well, like a lot of other changes in the lending world, those days are over.  As of February 1, 2010 if a condominium community is NOT already approved by FHA and HUD then one cannot purchase in that community with an FHA loan.  Will this create problems?  It is likely to.  A large percentage of first time buyers buy in a condominium complex and tend to use FHA financing due to the lower down payment requirements. 

Do Your Homework....
If you are purchasing with an FHA loan, save yourself a lot of time and hassle by doing your homework and learning which communities are approved for an FHA loan.  I have outlined some below, but you should check with your lender or visit HUD's website. 

Are there any alternative low down payment programs?
If the community does not qualify for an FHA loan, depending on the location and whether or not you meet the income qualifications, you may be able to qualify for the USDA loan program which offers 100% financing.  Please see other blog post under 'Financing.'

Bucks County, PA Approved Condos

(this is NOT an exhaustive list)
Town Condominium Name Zip Code Approved Through
Chalfont Lindenfield 18914 12/7/2010
Doylestown

Charing Cross

 18901 12/7/2010

Doylestown

 Valley House 18901 12/7/2010
Doylestown Westwyk 18901 12/7/2010
Holland Tamerlane 18966 12/7/2010
Holland Tapestry 18966 12/7/2010
Holland Village Shires: To Include - Beacon Hill, Canterbury Croft, Hamlet, Old Jordan Woods, and Signal Hill/Heritage Place 18966 12/7/2010
Jamison Mill Ridge 18929 12/7/2010
Lower Makefield
(Yardley Address)		 Brookstone 19067 12/7/2010
Lower Makefield
(Yardley Address)		 Rose Hollow 19067 12/7/2010
Lower Makefield
(Yardley Address)		 Spruce Mill at Makefield Glen 19067 12/7/2010
Middletown Township Summit Ridge 19047 12/7/2010
New Britain Carousel Pointe 18914 12/7/2010
New Hope Riverhill of New Hope
(a section of Village II)		 18938 12/7/2010
New Hope
(Solebury)		 Wilshire Hunt 18938 12/7/2010
Newtown Country Bend 18940 12/7/2010
Newtown Crown Pointe 18940 12/7/2010
Newtown Kirkwood 18940 12/7/2010
Newtown Liberty Square 18940 12/7/2010
Newtown Society Place at
Newtown Grant		 18940 12/7/2010
Upper Makefield (Washington Crossing) Heritage Hills 18940 12/7/2010
Yardley Cornerstone 19067 12/7/2010
Yardley Yardley Commons 19067 12/7/2010

 

Mercer County, NJ Approved Condos

(this is NOT an exhaustive list)

Town Condominium Name Zip Code Approved
Through
East Windsor Wycoff's Mill 08520 12/7/2010
Ewing Heritage Crossing 08628 12/7/2010
Ewing Parkway Gardens 08628 12/7/2010
Ewing The Jefferson @ Ewing 08618 5/7/2011
Hamilton Society Hill I and II Hamilton 08619 12/7/2010
Hamilton Grandville Arms 08690 12/7/2010
Hamilton Ravenscroft 08690 12/7/2010
Lawrence Eagles Chase 08648 12/7/2010
Lawrence Lawrence Square Village I and II 08648 12/7/2010
Lawrence Society Hill @ Lawrenceville 08648 12/7/2010
Lawrence The Manors @ Lawrenceville 08648 12/7/2010
Pennington Drakes Mill/Baker Mill (part of Brandon Farms) 08534 12/7/2010
Pennington The Villages at Twin Pines 08534 12/7/2010
Princeton Griggs Farm 08540 12/7/2010
Princeton The Woods @ Princeton Walk 08540 12/7/2010
Princeton Junction Windsor Ponds 08550 12/7/2010
Washington Township Andover Glen @ Foxmoor 08691 12/7/2010
Washington Township Hampton Chase 08691 12/7/2010

 

Middlesex County, NJ Approved Condos

(this is NOT an exhaustive list)

Town Condominium Name Zip Code Approved Through
Plainsboro Campbell Woods at Princeton 08540 12/7/2010
Plainsboro Ravens Crest 08536 12/7/2010
Plainsboro Villages at Princeton Crossing 08536 12/7/2010
South Brunswick Princeton Landing 08540 12/7/2010