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Property Eligibility Requirements for FHA Financing

Acceptable Properties

Before buyers qualify for FHA financing for HUD homes, certain property eligibility requirements apply. Meeting certain criteria is essential for approval. The following properties are acceptable property types for FHA financing:

  • HUD Homes – but appraisals are required
  • Single family residence
  • Condo spot approvals
  • 2 Units
  • Manufactured homes
  • 3-4 units may be approved, but approval is on a case-by-case basis

Unacceptable Properties

Certain properties are unacceptable and do not qualify for FHA financing. The following are properties that are unacceptable (although HUD homes are unlikely to fall in these categories):

  • Time share projects
  • Land trust
  • Boarding houses
  • Commercial enterprises
  • Multi-dwelling condominium
  • Motels and hotels
  • Agricultural property
  • Earth homes
  • Projects that have pending litigation
  • Private clubs
  • Sorority houses, fraternity houses and sanitariums
  • Tourist houses

Before buyers qualify for FHA financing for HUD homes, certain property eligibility requirements apply.

Next: FHA loan checklist

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