The condo was advertised by HUD as IN (insured) and as "203k eligible".I won the bid, and now I have trouble finding a reliable lender who would originate an FHA loan.Every mortgage broker I spoke with so far told me that I cannot get an FHA loan because the condo is located in an HOA who is not FHA approved.However, I called the HUD directly and they emailed me info where it is explained exactly how one could do a loan in a condominium project that is not FHA approved.Here is a straight quote from their email""To be eligible for FHA insurance a condominium project must meet all condominium requirements and be approved by FHA or an unconditionally approved Direct Endorsement lender, as outlined in Mortgagee Letter (ML) 11-22, ML 12-18, ML 15-27 and ML 16-15.FHA case numbers cannot be requested unless the project is approved.

Houston Real Estate Highlights in February Single-family home sales were statistically flat year-over-year, with 5,280 units sold, ending three consecutive months of declining sales;Days on Market (DOM) for single-family homes increased slightly from 66 to 68 days;Total property sales were also statistically flat, with 6,388 units sold;Total dollar volume rose 3.1 percent to $1.76 billion;The single-family home median price climbed 2.9 percent to $232,900, reaching a February high;The single-family home average price increased 1.9 percent to a February high of $286,156;Single-family homes months of inventory was at a 3.7-months supply, up from 3.1 months last February, but slightly below the national inventory level of 3.9 months;Townhome/condominium sales fell for a sixth straight month – down 7.6 percent, with the average price down 11.9 percent to $186,859 and the median price down 11.8 percent to $150,000;Lease properties staged a strong performance, as single-family home rentals leapt 26.5 percent with the average rent up 0.8 percent to $1,733;Volume of townhome/condominium leases surged 27.1 percent with the average rent up 1.9 percent to $1,548https://www.har.com/content/newsroom?

Houston Real Estate Highlights in February Single-family home sales were statistically flat year-over-year, with 5,280 units sold, ending three consecutive months of declining sales;Days on Market (DOM) for single-family homes increased slightly from 66 to 68 days;Total property sales were also statistically flat, with 6,388 units sold;Total dollar volume rose 3.1 percent to $1.76 billion;The single-family home median price climbed 2.9 percent to $232,900, reaching a February high;The single-family home average price increased 1.9 percent to a February high of $286,156;Single-family homes months of inventory was at a 3.7-months supply, up from 3.1 months last February, but slightly below the national inventory level of 3.9 months;Townhome/condominium sales fell for a sixth straight month – down 7.6 percent, with the average price down 11.9 percent to $186,859 and the median price down 11.8 percent to $150,000;Lease properties staged a strong performance, as single-family home rentals leapt 26.5 percent with the average rent up 0.8 percent to $1,733;Volume of townhome/condominium leases surged 27.1 percent with the average rent up 1.9 percent to $1,548.https://www.har.com/content/newsroom?

We think it could be sold for $60-$80K but as far as appraised value, we are not sure.So there is another option...We have a condominium worth around $80 K that we are most definitely selling in a year.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $100,000

Cash invested: $20,000

2 bedroom, 2 bathroom, 1,050 sqft condo. Currently rented for $1,295/mo.

...

Assuming you qualify and the condominium complex is warrantable, you can get away with 10% down, and a better interest rate than purchasing as an investment. 

“A non-warrantable condo is a condominium property in which the loan is not eligible to be sold to Freddie Mac or Fannie Mae“

A lot of condominiums have rental restrictions.

INVESTOR ADVANTAGE PROGRAM HIGHLIGHTS No personal income used to qualify**Qualification based on property cash flow**2 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieuUp to 80% LTV, no DTI restrictionsNo limit on number of properties financed (5 with CMS)Loan amounts up to $2 millionSeller concessions to 2%First-time investors allowedEscrow waiver permittedNo reserve requirement for the Investor Advantage Program1x30 in last 12 month on housing history acceptableFICO down to 620Non-warrantable condominium OK

@Paul Sandhu @Jon CrosbyI don’t know if there will be a problem with HOA, but there are 10 STR in same condominium community.