What we verified in “Condo, townhouse or single-family home: what changes”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to HUD Handbook 4000.1, a condominium project is one in which one-family units are attached, semi-detached, detached or manufactured homes, and in which owners hold an undivided interest in the common elements; and for FHA to insure a loan, the unit must be in an FHA-approved project, meet the definition of a site condominium or have completed Single-Unit Approval.

   Sources 1 · Handbook 4000.1 (last revised August 12, 2026), II.A.1, p. 172: 'A Condominium Project refers to a project in which one-family Dwelling Units are attached, semi-detached, detached, or Manufactured Home units, and in which owners hold an undivided interest in Common Elements'; 'A Condominium Unit must be either located within an FHA-approved Condominium Project, meet FHA’s definition of a Site Condominium, or have completed the FHA Single-Unit Approval process before a Mortgage can be insured' · Checked October 31, 2026

2. According to HUD Handbook 4000.1, a site condominium is a project of detached homes with no shared garages or other attached buildings, or of detached or townhouse-style attached homes where the unit includes the dwelling and land, with no manufactured homes, under a declaration of condominium; the owner must pay all required insurance and maintenance for the dwelling, except landscaping; and it does not need project approval or Single-Unit Approval.

   Sources 1 · Handbook 4000.1, II.A.1, p. 172, '(6) Site Condominiums': 'consists entirely of Single Family detached dwellings that have no shared garages, or any other attached buildings'; 'horizontally attached (townhouse-style) dwellings where the Unit consists of the dwelling and land'; 'does not contain any Manufactured Housing Units'; 'The Unit owner must be responsible for all required insurance and maintenance costs associated with the Unit dwelling, excluding landscaping'; 'Site Condominiums do not require Condominium Project Approval or Single- Unit Approval' · Checked October 31, 2026

3. According to HUD, FHA insures loans of up to 30 years to buy or refinance a unit in an FHA-approved condominium project or in a non-approved project that meets the Single-Unit Approval requirements; to approve a project, HUD looks at insurance coverage, financial condition, nature of title, pending legal action and physical condition; and for Single-Unit Approval the project must be complete and ready for occupancy, have at least five units, not be manufactured housing and meet a subset of requirements such as FHA insurance concentration, owner-occupancy percentage and financial condition.

   Sources 2 · FHA Condominiums: 'FHA insures condominium loans for up to 30-year terms to purchase or refinance a unit in an FHA-approved condominium project or in a project that is not FHA-approved but meets the Single-Unit Approval requirements'; 'including insurance coverage, financial condition, nature of title, the existence of any pending legal action or physical property condition'; 'complete and ready for occupancy, has at least five dwelling units and it is not a manufactured home'; 'FHA insurance concentration, owner-occupancy percentage, and financial condition of the project' · Checked October 31, 2026

4. HUD has a public search tool where you can look up FHA-approved condominium projects by state, county, city, ZIP code, name or status; FHA does not sell those properties; and on the list, 'Approved' means FHA loans can be processed for units in the project, 'Expired' that the approval lapsed, 'Rejected' that it was not approved (or that it is a Single-Unit Approval project) and 'Withdrawn' that approval was withdrawn and FHA loans cannot currently be processed.

   Sources 3 · Condominiums (entp.hud.gov/idapp/html/condlook.cfm): 'allows users to search for FHA-approved condominium projects by location, name, or status'; 'These properties are not for sale by the FHA'; FHA Connection, Condominiums List - Field Descriptions: 'Approved: Condominium project/submission was approved. Applications for FHA mortgage insurance can be processed'; 'Expired: Approved status of the condominium project expired'; 'Rejected: Condominium project/submission was not approved'; 'Single-unit approval condominium project'; 'Withdrawn: Condominium project/submission was previously approved; reason approval was withdrawn. Currently, applications for FHA mortgage insurance cannot be processed' · Checked October 31, 2026

5. According to Fannie Mae, before financing a unit in a condo, co-op or planned unit development (PUD), the lender must confirm the project meets its requirements, because these units carry their own risks: the project's financial stability, its condition and marketability, limits on the owner's control over decisions, use of the unit and common areas, and what happens if the project dissolves.

   Sources 4 · Selling Guide B4-2.1-01, General Information on Project Standards (08/05/2026), 'Fannie Mae’s Project Risk Overview': 'Before delivering a loan secured by an individual unit in a project, the lender must determine that the project meets Fannie Mae's eligibility requirements'; 'the financial stability and viability of the project; the condition and marketability of the project; limitations on the unit owner’s ability to control the decision-making for the project, occupy the unit, or utilize the project’s amenities and common elements; dissolution of the project' · Checked October 31, 2026

6. According to Fannie Mae, in a planned unit development (PUD) owners hold title to their property (lot and structure) and an interest in the HOA that owns or manages the common areas; and a condo project is new if, among other things, fewer than 90% of the units have been sold, it is not complete, it is subject to more phases or the HOA is still controlled by the developer.

   Sources 4 · Selling Guide B4-2.1-01 (08/05/2026), 'Project Types': 'Planned unit development (PUD) project'; 'The unit owners in the project have title to a residential property (lot and structure) and an interest in the HOA that owns or manages the common area and facilities'; 'New condo project': 'fewer than 90% of the total units in the project have been conveyed to unit purchasers'; 'the project is not fully completed'; 'subject to additional phasing or annexation'; 'HOA still in the developer’s control' · Checked October 31, 2026

7. According to Fannie Mae, a condo project needs a master policy covering the common elements and residential structures unless the project's documents require individual policies; to the extent the master policy does not cover the unit's interior or your improvements, you must keep an individual unit owner policy; and in a PUD where each owner has an individual policy, the lender does not have to verify master coverage of the common elements.

   Sources 5 · Selling Guide B7-3-03, Master Property Insurance Requirements for Project Developments (08/05/2026): 'Master property insurance policies are required for the common elements and residential structures for each loan that Fannie Mae purchases in a condo project unless the condo project's legal documents require individual'; 'To the extent the master property insurance policy does not cover the interior of the unit or improvements to the unit, the borrower must maintain an individual unit owner property insurance policy'; 'When units located within a PUD are covered by individual property insurance policies maintained by their respective owner(s), the lender or servicer is not required to verify master property insurance coverage on PUD common elements' · Checked October 31, 2026

8. According to the NAIC home insurance guide, the condominium unit owners form is for owner-occupants of condo units and insures your personal property and your walls, floors and ceiling against the perils of the Broad Form; if you own a townhouse, you may insure it through an individual homeowners policy or an association master policy; and if you have questions about your policy, you can contact your state insurance department.

   Sources 6 · A Consumer's Guide to Home Insurance (NAIC, 2022), p. 7: 'The Condominium Unit Owners Form is for owner-occupants of condominium units. It insures your personal property and your walls, floors and ceiling against all of the perils in the Broad Form'; 'If you own a townhouse, you may insure it through either an individual homeowners policy or an association master policy'; p. 10: 'If you still have questions, contact your state insurance department' · Checked October 31, 2026

9. According to the CFPB, condo or HOA dues are usually not included in the payment you make to your mortgage servicer; condos, co-ops and some neighborhoods may require you to join the association and pay dues; those dues can range from a few hundred dollars to more than a thousand dollars a month and should be factored in when deciding whether you can afford the mortgage; and, although not common, your servicer may agree to include them in escrow on request.

   Sources 7 · Are condo/co-op fees or homeowners' association dues included in my monthly mortgage payment? (last reviewed September 11, 2024): 'Usually not'; 'are not included in the payment you make to your mortgage servicer'; 'Condominiums, co-ops, and some neighborhoods may require you to join'; 'can range from a few hundred dollars a month to more than one thousand dollars a month'; 'Be sure to factor in this cost'; 'may be willing to include your HOA dues in the escrow portion' · Checked October 31, 2026

10. According to the CFPB, the counseling agencies in its search tool are approved by HUD and offer independent advice, often at little or no cost, on buying a home, renting, defaults, forbearances, foreclosures and credit; you search by ZIP code; and not every agency offers every service.

    Sources 8 · Find a Housing Counselor: 'approved by the U.S. Department of Housing and Urban Development (HUD)'; 'offer independent advice, often at little or no cost to you'; 'buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'Search by ZIP code'; 'Not every housing counselor offers all services' · Checked October 31, 2026