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HUD owned condos – different rules for FHA financing

October 6th, 2012 · 4 Comments · Condos in Macomb County MI, tips for home buyers, tips for purchasing a foreclosure

We (agents and home buyers) are all getting used to the fact that if a home buyer is using FHA as their mortgage financing for a condo, that the condo must be in a HUD approved condo complex.   (Lots of fun for the buyers agents and buyers to find what they want within a complex that is HUD approved!).   There is an exception to this hard rule though:

What is not commonly known is this:   A HUD owned condo, regardless if it is in a HUD approved complex, can be financed using FHA.

That’s right folks.  If HUD owns the condo, no matter where it is located, you can use FHA financing for the condo.  I understand why HUD allows this.  They don’t want to own a condo for any longer than necessary, so they open up FHA financing to anyone who wishes to purchase the condo even if the complex isn’t HUD approved.

I do feel though that it is a shame though for  other condo sellers who don’t own a condo in an approved complex. They are pretty much restricted to cash only buyers, or those with hefty down payments using conventional loans.

Here is an example of the condos for sale right now (October 6, 2012)  in Macomb County owned by HUD and able to financed with FHA:

8263 Kennedy Circle in Warren for $23,000
25400 Quarterdeck in Harrison Township for $25,888
30318 Wedgewood Circle in Roseville for $31,000
37292 Charter Oaks in Clinton Township for $36,000

If you are a condo buyer in Macomb County and using FHA for your financing, ask your agent to check the HUD  list of condos for sale. You may find the condo you want in a complex that you didn’t think would work for your financing.

Kris Wales – a partner for your real estate needs in Macomb County MI
SEARCH Macomb County MI homes for sale
Contact Kris – (586) 536-5453 cell


4 responses so far ↓

  • 1 Wanda Mccormick // Oct 30, 2012 at 6:15 am

    My husband and Ifell in love with a condo at Huntcliff (Macomb Twp. MI) We raced to put in an offer, and planned all the ways we would enjoy this condo. The agent said it was FHA approved. In just a few hours, he called us back, and said it was a mistake, the condo wasnt FHA approved!! We’re getting older, and need a condo. We were heart broken after looking for about a year. Can you PLEASE send us some info about FHA financing for condos in Macomb Twp, or Macomb, MI Its getting later in the year, and we’re getting desperate. We live in an apt complex that is terrible, unsafe, and has bugs. UGH

  • 2 Kris Wales // Oct 30, 2012 at 8:40 am

    Hi Wanda,

    Thanks so much for writing. I will have more free time later this afternoon and send you a list of condo complexes in Macomb Township at are currently HUD approved.

    If you can, please call me later so that I can make sure I have an accurate email and phone number for you.

    Thanks so much,

    Kris Wales
    586-536-5453 (cell)

  • 3 Ron Smith // Jan 30, 2014 at 2:14 pm

    I cannot confirm that Rosemeadow condos in Clinton Twp 48036 is fha warranted yet I have seen this confirmed through July of 2014 ???
    Thanks Ron

  • 4 Kris Wales // Jan 30, 2014 at 2:35 pm

    Hi Ron,

    I went to HUDs site ( and typed in the zip code, and Rose Meadows in 48036 is showing approved through 06/26/2014. It states “62 units , buildings A-E). Go to the link that I put and when you see it you can print it to give to your lender. PS: “FHA Warranted and HUD approved” may be two different things. Not sure about that. Good luck!

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