The FHA is getting ready to update its guidelines for borrowing on condos, townhomes and patio homes. Starting in February 2010, “FHA approved” will mean 3.5% down plus a financially stable association approved by your lender. This is huge and is a big reason for the associations who manage these communities to get their acts together.
Visit these links for more information:
To see if a condo project is FHA-approved: https://entp.hud.gov/idapp/html/condlook.cfm
For more information on buying a condo: http://www.myfha.net/FHAcondo/