What these loans are
FHA loans are insured by the Federal Housing Administration and VA loans are guaranteed by the Department of Veterans Affairs for eligible service members and veterans. Both are for owner-occupied homes and have program limits.
They are not for investment properties.
Down payment
FHA loans allow lower down payments than many conventional programs, and VA loans may allow none for eligible buyers. Fees, mortgage insurance or funding fees apply.
Ask a lender to explain the total monthly payment.
Condo building approval
Lenders and agencies review condo buildings for owner-occupancy ratios, delinquencies, reserves, insurance, litigation and commercial space. A building that does not meet the rules can be ineligible even if you qualify.
Check the building's approval status before you offer.
Loan limits and property
Programs have loan limits that vary by county and property standards the home must meet. Appraisal conditions can require repairs.
Your lender can confirm current limits.
Occupancy rules
You must plan to live in the home as your primary residence, usually within a stated period after closing. Using the home as a rental or second home does not fit these programs.
Ask about exceptions with the lender.
Compare with conventional
Conventional loans can be cheaper for borrowers with strong credit and larger down payments. Compare total cost, not only the down payment.
Consider mortgage insurance duration.
Common mistakes
Falling in love with a building before checking approval, ignoring appraisal repairs and assuming rules are the same in every state.
Another mistake is not asking about assessments.
Checklist
Confirm eligibility. Check building status. Compare loan options. Get pre-approved. Review condo documents with your agent.
A typical situation
A buyer finds a condo they like, but the building has a high share of rentals or an unresolved lawsuit. The lender cannot approve the loan for that building, so the buyer must choose another building or loan type. Checking this first saves a deposit and weeks of time.
First-time buyers
Many first-time buyers consider these programs for a lower down payment. Compare the monthly cost with a conventional loan, remember closing costs and keep reserves for maintenance and insurance.
Practical tip
Ask your lender for a written pre-approval that names the program, then ask your agent to confirm the building's status before every offer.
Next step
We will filter condos by your loan type before you tour. Lidiya Tretyak is a licensed Florida real estate agent with Douglas Elliman and speaks English, Russian and Ukrainian; the first consultation is free.
This guide is general information, not legal or tax advice. Laws and programs change — confirm details with a Florida attorney and a US tax professional.
Official sources
