Understanding Eligible FHA Loan Property Types
Eligible Property Types for FHA Loans
When considering an FHA loan, it’s essential to know what types of properties qualify. Unlike some other loan types, FHA loans are quite flexible in terms of the kinds of properties they can finance, including:
1. Single-Family Homes
Most commonly, FHA loans are used to finance single-family homes. These are residential buildings that accommodate just one family and include detached houses on their own land which are freestanding, as well as attached homes like townhouses.
2. Multi-Family Units
FHA loans can also be used to purchase residential properties with up to four units, such as duplexes, triplexes, and fourplexes. This can be a great avenue for first-time buyers to own a home while generating rental income from additional units to help offset the mortgage payment and build equity faster.
3. Manufactured and Mobile Homes
Whether it’s placed on rented land, in a manufactured home community, or on a lot you plan to own, manufactured and mobile homes are eligible for FHA financing. However, these properties must meet very specific requirements, including a permanent foundation and compliance with HUD guidelines. Read more about FHA loans for manufactured homes here
4. Condominiums
Condos can qualify for FHA financing as long as the condominium project is approved by the FHA. This means it meets regulations relating to owner occupancy, financial stability, insurance coverage, and more. Read more about financing a condo with an FHA loan here
Remember, it’s critical to discuss your specific financial situation with a mortgage advisor or lender who can advise you on the best course of action for your home purchase. You can find a great FHA lender right here at FHArates.com!
