Buying a Condo With an FHA or VA Loan? Here’s What You Need to Know Before You Fall in Love With One

Why do so many buyers get excited about a condo, only to find out later that their FHA or VA loan won’t work? And how do you avoid losing money on a deal you can’t close?

If you’re a first-time buyer, a military buyer, or someone trying to stay inside a certain budget, condos can be incredibly appealing. Lower prices, less maintenance, great amenities — it all makes sense.

But here’s the part most buyers don’t know:

Most condos in Northeast Florida are not FHA or VA approved. And even the ones that are… might not stay that way.

Let’s walk through the “why” behind it all — and how to protect yourself before you get financially invested.

Why FHA and VA Approval Matters So Much

When a condo community is first built, the developer usually handles the initial FHA and/or VA approval. These are two separate approval processes with different rules, and both have strict guidelines around things like:

• Reserve funds

• Insurance

• Percentage of owner-occupants vs. rentals

• Overall financial stability

• Proper budgeting and documentation

Once approved, that status only lasts for a certain period. When it expires, the condo association — now run by the homeowners — has to renew it.

And this is where things start to break down.

Why Many Condo Communities Lose Their Approval

When the board is made up of residents, the conversation often shifts to keeping fees down. And when costs rise, boards sometimes vote to remove expenses that they think aren’t “necessary.”

Unfortunately, those cuts often include the very items required to maintain FHA or VA approval.

So the community slowly slips out of compliance…
then loses its approval…
and often never gets it back.

Getting re-approved is possible, but it’s not easy. It’s time-consuming, expensive, and requires the board to pull together a lot of documentation. Most simply don’t pursue it.

Condo Approval Can Be Tricky… Especially When a Complex Was Built in Phases

This is something most buyers never hear about:

Many condo communities in Northeast Florida were built in phases. And FHA/VA approval is not automatically granted to every phase.

So you might see:

• Phase 1 is FHA-approved

• Phase 2 is not

• Or Phase 1 lost its approval years ago

• Or Phase 3 was never submitted for approval

Just because one part of the complex is approved does NOT mean your unit is.
This is why buyers get confused when a listing says “FHA accepted,” but their specific building or phase does not qualify.

And to make it even trickier…

Just Because Someone Bought a Unit With FHA/VA Before Doesn’t Mean You Can Now

This is a huge misconception.

A buyer might say:

“Well, the person before me bought with a VA loan, so I should be fine.”

Nope.

Approvals expire. Requirements change. Associations fall out of compliance.
A condo that was FHA or VA eligible five years ago might have zero eligibility today.

So you can’t rely on past sales. You need to verify current eligibility.

The MLS Can Be Wrong — Often

Sometimes a listing will say:

“FHA and VA loans accepted!”

But here’s the reality:

Most agents don’t double-check the complex’s approval status before selecting those boxes.

So what you see in MLS may be completely incorrect.

This is why you need:

• An agent who truly understands condos in Jacksonville and Northeast Florida

• A lender who works with condos often and will be upfront with you from the start

Those two things alone can save you thousands.

What About One-Time (Spot) Approval?

Some lenders will say:

“Don’t worry! We can try for a one-time approval.”

And yes — that option exists.

But in order to get it, the lender needs very specific documents from the association. Most associations will not provide them. Not because they’re difficult… but because they don’t want the responsibility that comes with it.

So the approval falls through, and then you hear:

“Well… we can switch you to conventional instead.”

Except maybe you can’t qualify. Or the payment is too high. Or you don’t have the down payment.

And at that point, you’ve already paid for:

• Inspections

• Appraisals

• Application fees

Money you don’t get back.

The Best Way to Protect Yourself

If you know you need an FHA or VA loan, here is the safest sequence:

1. Start with a lender who understands condos.

Not every lender does — and you need one who’s upfront, not one who tries to “save the deal” at the end.

2. Ask the lender which condo communities are currently approved.

Let the lender give you the list. This keeps you out of trouble from day one.

3. Look ONLY at complexes that match your loan type.

This keeps your time, money, and heart protected.

You can also check approval status yourself here:
👉 https://fhareview.com/check-status-fha-va-condo-approval/

4. Remember: Townhomes and single-family homes don’t have these restrictions.

If your FHA or VA loan is non-negotiable, a townhome or single-family home offers a far smoother path.

Final Takeaway

Condos can be a fantastic option — but only if the financing lines up. FHA and VA loans come with extra layers of approval that most buyers never hear about until they’ve already spent money.

Understanding how condo approvals work (and how easily they’re lost) is the key to avoiding disappointment and unexpected costs.

Want Help Navigating This?

There is so much more to learn here, especially when it comes to condos in Jacksonville and Northeast Florida.

Call CrossView Realty and we’ll connect you with one of our condominium experts who can break everything down for you and help you shop smarter from the start.

📞 904-503-0672
📧 info@crossviewrealty.com