Types of Properties That Are Eligible for FHA Financing

Types of Properties That Are Eligible for FHA Financing

FHA loans are mortgage loans insured by the Federal Housing Administration (FHA) and provided to potential homeowners by approved lenders. The insurance by FHA gives approved lenders confidence to provide financing even to low-income earners with lower credit scores.

A home acquired using FHA financing must be your primary residence. Here are the different types of properties that you can own using FHA financing:

Single-Family Homes

A single-family home is a detached housing unit without shared walls with any other house. It is suitable for one household and meets the requirement of FHA financing for primary residence.

If the home has basement suites, it can still qualify for FHA loans, provided the family lives in the main house. Buyers should have a decent credit score and show that they can make payments on time.

Multi-Family Homes

A multi-family home is a residential building that contains two or more houses capable of accommodating more than one family. It can be a duplex or up to four units in the building that accommodate two to four families living separately.

For a multi-family home to qualify for FHA financing, the owner must reside in one of the houses because FHA financing is not for income-generating rental units. 


A condo is a housing unit within a building, privately owned by an individual or household. All the condo owners co-own all the common areas within the building. One can acquire a condo using FHA financing if the owner lives in the house or has lived there for more than one year. Condos are cheaper than stand-alone houses, making them ideal for first-time home buyers with low credit scores.


A townhouse is a multi-floor home built in highly populated urban areas. It shares one or more walls with other houses, but its one-household occupancy qualifies it for FHA financing. The homeowner must occupy all the floors and reside in the house for more than one year for the home to meet FHA’s eligibility for financing.

Manufactured Homes

A manufactured home is constructed in a factory and transported to a specified location for assembly. This style of home qualifies for FHA financing if the owner of the plot of land resides in it. Manufactured homes are less expensive and ideal for low-income earners or first-time buyers.

FHA lenders require beneficiaries to pay a down payment and monthly installments to settle the outstanding balance. A house must also meet FHA’s home standards, including assessment by an FHA appraiser.

An appraiser assesses water, electricity, and sewage systems to determine the suitability of the house for occupancy. The age of the house, size, and location are not factors that go into an FHA approval.

Own a Home with FHA Loans 

An FHA loan allows first-time home buyers to acquire houses regardless of their bankruptcy history. The government insures the loan, reducing liability and risks for the home buyer and the lending institution.

A credible approved lender will provide you with information on FHA financing options, availability of funds, and the best homes to suit your household needs. Find an approved lender today and start your home ownership journey immediately.

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