If you're planning on getting an FHA mortgage loan to purchase a South Florida condo, think again. It's probably not going to happen. The FHA has strict guidelines on which condominium complexes can have any more FHA purchase loans. The reasons for the restrictions date back to the Recession when many, many condo units were foreclosed at steep discounts. It's a new world now.

Earlier this week, only three Broward County condo communities were allowed to participate in FHA mortgage lending. For an updated list of what condo complexes are approved click here and search by county. You can also find a summary of the data here

If an FHA loan is the only type that you can obtain, you might want to consider buying a townhouse. The starting  prices are lower than single family homes, but higher than condos. In Coral Springs, townhouses are priced from $180,000 - $300,000. Our single family homes start at approximately $370,000 at the time this article is being written.

Townhouses are governed as condos (you don't need homeowner's insurance for the roof and other common areas) or HOAs (lenders require homeowners insurance.) The type of governance is a searchable field your Realtor can use. If you are approved for an FHA loan, than ask the Realtor to limit the search to HOA governing.

I know that it's confusing but keep this in the back of your mind because it's one of those things that agents might forget to discuss.