Condominiums are often the most affordable homeownership option for first time buyers, small families, single people, and older Americans. In 2019, the U.S. Department of Housing and Urban Development (HUD) released the long-awaited final rule on project approval for single-family condominiums insured by the Federal Housing Administration (FHA). For many years, NAR urged HUD to finalize changes to the previous rule that would ease restrictions on FHA financing for condominiums, thus enabling more first-time buyers, older adults, and low to moderate-income families to achieve the dream of homeownership. For additional information about the final rule, visit NAR's FHA Condo Rule Assessment. NAR continues to work with FHA to ensure the Rule is working as designed, and condominiums are more accessible to FHA borrowers.

In November of 2020, Fannie Mae updated their condominium guidelines, with Freddie Mac following suit. These new FAQs make it clear that in vacation communities, condominiums that function more like a hotel or resort will not be eligible for GSE financing. NAR continues to work with the GSEs on how this will impact communities.

Condominiums Topics

Political Advocacy

Current Legislation/Regulation

None at this time


Issue Summary - FHA Condo Financing

Letters to Congress - FHA Condo Financing

Letters to federal agencies - FHA Condo Financing

Congressional testimonies- FHA Condo Financing

NAR Federal Issues Tracker

Legislative Contact(s):

Sehar Siddiqi

Ken Fears

Matt Emery

Regulatory Contact(s):

Sehar Siddiqi

Ken Fears

Matt Emery

What is the fundamental issue?

After more than a decade of advocacy by NAR, FHA has published new condominium guidelines that reduce burdens on properties to become approved.

I am a real estate professional. What does this mean for my business?

We believe the new changes could result in 60,000 more units available per year.

NAR Policy

Condominiums continue to be the most affordable homeownership option for many first time buyers, small families, single people, and older Americans.  NAR strongly supports loosening FHA’s condominium rules to ensure that more homeowners will be able to sell their units, and homebuyers will have more opportunities to buy affordable properties.

Legislative/Regulatory Status/Outlook

On August 14, 2019, HUD published the long-awaiting condo rules; which went into effect on October 15, 2019. These rules reduce owner-occupancy requirements for some properties; raise commercial space limits; extend approval time frames; re-instate single-unit approval, and reduce the burdens of the re-certification process. NAR estimates this could provide up to 60,000 more condominum units for FHA buyers per year. NAR is now monitoring the implementation to ensure the program works as well as expected.

NAR Committee

Federal Financing and Housing Policy Committee


NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.

Condos: The Basics

How to Sell a Condo (Bankrate, Apr. 9, 2021)

7 Tips for Buying a Condo in 2021 (Bankrate, Apr. 5, 2021)

Are Condos a Good Investment for 2021? (Mashvisor, Oct. 23, 2010)

3 Reasons to Buy a Condo – and 3 Reasons to Beware (U.S. News & World Report, Jun. 26, 2020)

What is the Difference Between Co-Ops and Condos? (The Balance, Mar. 10, 2021)

An Introduction to Buying a Condominium (Investopedia, Jan. 15, 2020)

5 Reasons to Consider a Condo or Townhouse (RIS Media, Dec. 3, 2019)

The Pros and Cons of Condo Ownership (The Balance, Aug. 29, 2019)

Condo Buyer's Guide (Fannie Mae)

Home Owners Associations (HOAs) and Fees

The Pros and Cons of Belonging to a Homeowners Association (My SA, Apr. 6, 2021)

Homeowners Association (HOA): A Definition (Rocket Mortgage, Mar. 11, 2021)

What Do HOA Fees Cover: Homeowners Association Expenses Explained (Realty Biz News, Feb. 26, 2021)

HOA Fees: What are They and What is Covered (The Ascent, Jan. 14, 2021)

The Pros and Cons of Buying a Condo (Bob Vila, Jan. 8, 2021)

Homeowner’s Association Fee (HOA Fee) (Investopedia, Sep. 24, 2020)

Marijuana Ignites Skirmishes Between Users, Neighbors (REALTOR® Magazine, May 13, 2020)

Amenities Off Limits: Reduce HOA Fees? (Fort Meyers News-Press, Apr. 19, 2020)

A Guide for Community Association Members Navigating Complexities of the Coronavirus Pandemic (Forbes, Mar. 21, 2020)

Arizona HOA Wants to Fine Residents Over Social Media Rants (REALTOR® Magazine, Jan. 30, 2020)

The Condo Market

Is That Condo Building Structurally Sound? (REALTOR® Magazine, Jul. 28, 2021)

Condos v. Co-Ops: Why Condos Are Easier to Buy and Sell (Blocks & Lots, Jan. 20, 2021)

Condos are Selling for a Record 17% Discount to Single-Family Homes as the Coronavirus Fuels Demand for Space (Redfin, Nov. 25, 2020)

The Decade Dominated by the Ultraluxury Condo (The New York Times, Jan. 10, 2020)

Loan Policies

How Does a Condo Mortgage Work? (Bankrate, Apr. 6, 2021)

Issues with Condominium Financing and Mortgage Options (Gustan Cho, Mar. 22, 2021)

FHA Approved Condos: How to Find One (Credible, Feb. 9, 2021)

Project Approval for Single-Family Condominiums [Final rule] (Federal Register, Aug. 15, 2019)

Voice for Real Estate: New Condo Rules Championed by NAR Will Open Doors for Homebuyers all Across America (National Association of REALTORS®, Sep. 3, 2019)

Condo Rule Opens Door to Homeownership for Middle Income Americans (National Association of REALTORS®, Aug. 22, 2019)

FHA Single Family Housing Policy Handbook - Condo Project Approval (United States Department of Housing and Urban Development, Aug. 14, 2019)

National Association of Realtors® Applauds Long-Awaited FHA Condo Rule (National Association of REALTORS®, Aug. 14, 2019)

NAR Assessment: FHA Final Condo Rule (National Association of REALTORS®, 2019)

VA Loan Guaranty (United States Department of Veterans Affairs)

Related Websites

FHA Approved Condos — Complete 2020 Guidelines and Updates (The Mortgage Report)

Community Associations Institute

Condominiums (Department of Housing & Urban Development) — Search by city

Institute of Real Estate Management

Living in a Housing Cooperative (National Association of Housing Cooperative) — FAQs

Condo, Co-op, and Planned Unit Development (PUD) Eligibility (Fannie Mae)

Condominium Unit Mortgages (Freddie Mac)

eBooks & Other Resources


The following eBooks and digital audiobooks are available to NAR members:

The Complete Guide to Purchasing a Condo, Townhouse, or Apartment (Kindle, eBook)

The Condominium Concept (Kindle, eBook)

Condo Owner's Answer Book (Kindle, eBook)

Financing Your Condo, Co-op, or Townhouse (eBook)

How to Buy a Condominium or Townhouse (eBook)

Make Money with Condominiums and Townhouses (Kindle, eBook)

Tips & Traps When Buying A Condo, Co-Op, or Townhouse (Kindle, eBook)

Your Dream Home: A Comprehensive Guide to Buying a House, Condo, or Co-op (Kindle, eBook)

Books, Videos, Research Reports & More

The resources below are available for loan through Member Support. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Member Support at 800-874-6500 for assistance.

Condos and Co-ops (Chicago, IL: Dearborn Real Estate Education, 2006) HD 1377 M48c

Everything You Need to Know Before Buying a Co-op, Condo, or Townhouse (New York, NY: AMACOM, 2006) HD 1341 R74

Condominiums: The Pros and Cons of Ownership (Port Orchard, WA: Windstorm Creative, 2005) HD 1377 L16

Make Money with Condominiums and Townhouses (Hoboken, NJ: John Wiley, 2003) HS 1377 E2

How to Invest in Condominiums: The Low-risk Option for Long-term Cash Flow (New York, NY: John Wiley & Sons, 2002) HD 1377 V81

The Condo and Co-op Handbook: A Comprehensive Guide to Buying and Owning a Condo or Co-op (New York, NY: Macmillan, USA, 1998) HD 1377 W86

How to Buy an Condominium or Townhome: with Sample Forms and Worksheets (Naperville, IL: Sourcebooks, 1997) HD 1377 Ir9

Have an idea for a real estate topic? Send us your suggestions.

The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.