Buying a condo in Texas with an FHA loan can work well, but the building, the unit, and you all have to qualify. The Texas Mortgage Pros is a mortgage broker that helps Texas buyers quickly determine whether a condo can be financed with FHA, which approval path applies, and which HOA documents you’ll need, so you don’t waste your option period on a property that won’t work.
Call (281) 801-6965 to talk through a condo or townhome you’re considering.
What FHA Condo Approval Means
With most homes, FHA looks at the borrower and the property. With a condo, it also reviews the entire condominium project: its legal structure, finances, insurance, owner occupancy, and other features. Under HUD’s Single Family Housing Policy Handbook 4000.1, FHA can insure a mortgage on a condo unit in one of three situations:
- The project is HUD-approved. The whole condominium project has been approved by FHA staff or by an FHA-approved mortgage company with HUD’s delegated authority.
- The unit gets Single-Unit Approval. One unit in a project that is not on HUD’s list may qualify if the unit and project meet HUD’s tests.
- The home is a site condominium. Some detached and townhome-style homes are legally condos but don’t need project approval.
HUD’s revised condominium section of the handbook is effective November 10, 2026. Rules can change, so we check the version that applies to your file.
Project Approval vs. Single-Unit Approval
HUD project approval
When HUD approves a project, it reviews the community as a whole. Approvals expire and must be recertified, so a building approved a few years ago may now show as expired. Even in an approved project, HUD requires at least 35% of units to be owner-occupied and no more than 15% of units to be more than 60 days behind on association dues or special assessments. HUD may stop issuing new FHA case numbers in a project where FHA-insured mortgages exceed 50% of the units.
Single-Unit Approval
Single-Unit Approval (sometimes called a spot approval) allows one unit in a project not on HUD’s list to be considered. It isn’t automatic. The review uses HUD’s questionnaire (form HUD-9991) and the HOA’s documents, and an FHA case number alone is not approval. Under the handbook, the main tests include:
- At least five units, a certificate of occupancy for all units, and a unit whose certificate of occupancy is at least a year old or that has been occupied. Manufactured homes aren’t eligible for this route.
- At least 50% of the units owner-occupied.
- FHA-insured mortgages on no more than 10% of the units in projects with 20 or more units, or no more than two units in smaller projects.
- Developer control transfers to the owners, and in projects with 20 or more units, no single owner or related party holds more than 10% of the units.
- Separate operating and reserve accounts, reserves funded with at least 10% of a year’s assessments unless an acceptable reserve study supports less, and no more than 15% of units more than 60 days late on dues.
- Commercial space must be no more than 35% of the total floor area, and there can be no litigation over safety, structural soundness, habitability, or functional use.
The practical difference: project approval answers the building question up front, while Single-Unit Approval adds time for document collection and review, so it’s best to identify it before you’re deep into your contract deadlines.
How to Check If a Texas Condo Is FHA-Approved
HUD keeps a public FHA condominium search. You can search by state, county, city, project name, condo ID, or ZIP code. When you find a result, check:
- Name and location. Make sure it is the actual project, since names can be similar.
- Status. Results show as Approved, Expired, Rejected, or Withdrawn.
- Expiration date. An approval near or past its expiration needs a closer look.
- Condo ID. Keep it with the listing so your broker can follow up.
An “FHA approved” line in a listing isn’t proof. HUD’s list is the record. If a project isn’t listed or has expired, Single-Unit Approval or a site-condo review may still be options. Our blog post on FHA condo approval in Texas walks through the checks in more detail.
FHA Condo Requirements to Expect
Owner occupancy
FHA measures owner occupancy at the project level (35% for approved projects, 50% for Single-Unit Approval), separate from your own plans. FHA purchase loans are generally for a primary residence. See our FHA loan requirements for the borrower side.
HOA Master Insurance
HUD requires the association to carry a master hazard policy covering the full insurable replacement cost of the units and common elements, plus liability coverage of at least $1 million per occurrence. Projects with more than 20 units also need fidelity (crime) coverage. If the master policy doesn’t cover the inside of your unit, FHA requires a walls-in (HO-6) policy. The Texas Department of Insurance home insurance guide explains how condo and townhouse policies differ, and our post on Texas homeowners insurance costs covers shopping for coverage.
HOA dues and assessments
HUD counts HOA or condo association fees and special assessments as part of your total monthly housing cost, so a dues increase or new assessment can change what fits your budget. Our page on debt-to-income ratios explains how monthly costs are weighed.
Ineligible Projects
Some projects can’t be FHA-approved, including condo hotels, timeshares, cooperatives, houseboat projects, continuing care facilities, and projects with mandatory rental pooling.
Appraisal
The unit must still meet FHA property standards. Learn more about FHA appraisal requirements in Texas.
Texas Notes for Condo Buyers
- Resale certificate. Under Texas Property Code Section 82.157, the association must give the selling owner a resale certificate within 10 days of a written request. It covers assessments, approved capital expenditures, reserves, pending lawsuits, insurance, and the current budget, much of what an FHA review needs. The TREC Residential Condominium Contract (Resale) lets you terminate within seven days after receiving the certificate or condo documents if you didn’t get them before signing. Your real estate agent can explain the deadlines in your contract.
- Townhomes and site condos. Many Texas townhome and patio-home communities are condos on paper. HUD treats a property as a site condo when, among other things, the unit includes the dwelling and the land and the owner is responsible for insurance and maintenance (except landscaping). The recorded declaration decides, not the listing.
- Flood and the coast. If buildings sit in a FEMA Special Flood Hazard Area, the project must meet FHA’s flood insurance requirements; check the FEMA Flood Map Service Center. Along the Gulf Coast, a project with any part inside the Coastal Barrier Resources System isn’t eligible for FHA project approval or Single-Unit Approval.
HUD-approved project, Single-Unit Approval or site condo
At least 35% owner-occupied units in an approved project
At least 50% owner occupancy for Single-Unit Approval
No more than 15% of units 60+ days late on dues
Master policy with at least $1 million liability coverage
FHA purchase loans are generally for a primary residence
How We Help as Your Mortgage Broker
Condo financing has more moving parts than most single-family purchases. As a mortgage broker, The Texas Mortgage Pros can help you:
- Check HUD’s condo search with you and explain what the status means.
- Identify whether project approval, Single-Unit Approval, or a site-condo review applies.
- Build an early checklist of HOA, resale certificate, budget, and insurance documents.
- Coordinate with your real estate agent, the HOA or management company, and your insurance professional.
- Flag project issues that may affect timing so you can decide early.
Getting pre-approved before you shop and reviewing likely closing costs helps too. If the unit needs work, ask about FHA 203(k) loans.
FHA Condo Loan FAQs
Q: Can I use an FHA loan to buy a condo in Texas?
A: Yes, if the unit is your primary residence and the project is HUD-approved, the unit qualifies for Single-Unit Approval, or the home is an eligible site condo. You and the property must also meet FHA requirements.
Q: How do I find FHA-approved condos in Texas?
A: Use HUD’s FHA condominium search and check the status and expiration date. We can help you read the results.
Q: What if the condo isn’t on HUD’s list?
A: Single-Unit Approval may still work if the unit and project meet HUD’s tests, including at least five units and 50% owner occupancy. It takes extra documents and time.
Are Texas townhomes treated as condos?
Some are. It depends on the legal structure as recorded. A townhome that qualifies as a site condo doesn’t need project approval; a standard condo unit does.
Q: Do I need my own condo insurance?
A: If the HOA’s master policy doesn’t cover your unit’s interior, FHA requires a walls-in (HO-6) policy. An insurance professional can help you compare coverage.
Q: Can a condo near the Texas coast use FHA?
A: Possibly. Projects in a flood zone must meet FHA flood insurance requirements, and projects with any part inside the Coastal Barrier Resources System aren’t eligible.
Talk With a Texas FHA Condo Broker
Found a Texas condo or townhome you like? Before you make an offer, call (281) 801-6965 to talk with a mortgage professional at The Texas Mortgage Pros, or contact us online.
Texas Mortgage Pros, LLC | Company NMLS #2665861 | Gerry Nicodemus, NMLS #286371 | Equal Housing Opportunity | www.nmlsconsumeraccess.org | (281) 801-6965