New FHA guidelines now prohibit buyers from purchasing condominiums unless the unit and/or building is FHA approved. As a result, buying a condominium in Oakland, Emeryville and Berkeley just got a lot more difficult.

Basically what this means for buyers looking at the condo market is that they need 20% down to purchase a condo unless the building is FHA approved.

I was just sent a list by a mortgage broker of approved buildings in the area and was surprised and disappointed to currently see that only three condo complexes are FHA approved in Emeryville and none in Berkeley. Oakland has a longer list, but it’s still limited based on the inventory available.

So buyer be informed and feel free to send me an email if you would like a copy of the list of condominium complexes that are FHA approved. I would be happy to share the information.

On a positive note, homeowner associations are being pressured to file the necessary documents to begin the FHA approval process, which can take up to 10 weeks and likely longer as applications start to pile up.

Unfortunately, for FHA approved condo buyers trying to take advantage of the first time homebuyer tax credit, your choices are going to be limited and your search frustrating!