FHA project approval
A project can apply for FHA approval, which lasts three years and can be renewed. FHA's standards cover owner occupancy, commercial space, reserves, insurance, delinquency and litigation. The owner occupancy test is the notable difference in 2026: Fannie Mae and Freddie Mac dropped theirs for established projects in March, while FHA's remains. Relatively few buildings in many Florida markets carry current FHA approval, which is one reason FHA buyers struggle in the condo market.
Single-unit approval
For a unit in a building without project approval, the lender can request approval of that one unit. It is limited by how many FHA loans the building already has: no more than 10% of the units in a project of 10 or more units, or no more than 2 units in a smaller one. The project must be complete, and it still has to meet FHA's standards on the other points.
When FHA can help with a non-warrantable condo
The window is narrow. A building that fails agency review only on a point FHA treats differently may pass FHA — but the common non-warrantable reasons (condotel operation, litigation, unfinished critical repairs, an assessment for them) are issues FHA also reviews. In practice, FHA is worth checking when a building is non-warrantable for a technical reason and already has FHA approval or few FHA loans; otherwise a portfolio loan is usually the path.
VA loans
VA keeps its own list of approved condominium projects. A veteran buying in a non-warrantable building should check whether the project is on VA's list; if it is not, the same portfolio and non-QM options apply.
Comparing FHA with a portfolio loan
FHA's appeal is a low down payment and forgiving credit standards. A portfolio loan on a non-warrantable condo typically needs more down but reviews the building on its own terms. For a buyer who can manage the larger down payment, the portfolio loan is often the only one that will close; for a buyer who cannot, it is worth knowing early whether the building will pass FHA.
Sources, checked September 2026: HUD, FHA condominium approval · HUD single-unit approval guidance · Fannie Mae Lender Letter LL-2026-03 (March 18, 2026). Agency guides change; a lender confirms the rules in force on your application date.
Common questions
Can I use an FHA loan on a non-warrantable condo?
Sometimes — if the building has FHA approval, or qualifies for single-unit approval and meets FHA's standards. Most common non-warrantable issues also fail FHA.
What is FHA single-unit approval?
A way to insure a loan on one unit in a project without FHA approval, limited to 10% of units in projects of 10 or more, or 2 units in smaller projects.
Is FHA easier than Fannie Mae for condos?
Not on every point. FHA still applies an owner-occupancy test that the agencies dropped for established projects in 2026.
Can a VA loan finance a non-warrantable condo?
Only if the project is on VA's approved list. Otherwise a portfolio or non-QM loan is the usual route.