Texas Condo Loans, Including FHA, VA & Non-Warrantable Condos
Whether you are buying a condo in Austin, Dallas, Houston, San Antonio, or along the Texas Gulf Coast, the lender reviews the condominium project as well as your finances. Even if a building does not meet standard agency rules, you may still have financing options. We help you check the condo project upfront and compare loan options.
Condo Mortgage Options in Texas
When you apply for a condo mortgage in Texas, the lender underwrites both you and the condominium association. The loan programs available depend on how the building is structured and managed.
| Loan Type | Project Standard | Key Program Rules |
|---|---|---|
| Conventional | Meets Fannie Mae project standards ("warrantable" in industry terms) | Fannie Mae waives project review for detached condos, 2–4 unit projects, and 5–10 unit projects not part of a larger development or master association |
| FHA | HUD-approved condo project, or eligible for FHA Single-Unit Approval | Full project approval requires at least 50% owner-occupancy for most projects and renews every 3 years |
| VA | VA purchase loan for eligible veterans and service members; ask the lender how the condo project will be reviewed | No down payment as long as the sales price is not higher than the appraised value, and no PMI |
| Non-warrantable condo loan | Projects outside agency project standards | Some non-agency (non-QM) lenders may consider these buildings; terms and requirements vary by lender |
| DSCR (investors) | Investment condos where association rules allow leasing | Typically qualifies mainly on the property's rental cash flow; check local STR rules if renting short-term |
Warrantable vs. Non-Warrantable Condos in Texas
"Warrantable" is mortgage industry shorthand for a condo project that meets Fannie Mae project standards (Fannie Mae's Selling Guide does not use the word; it refers to eligible and ineligible projects). The table below lists two Full Review requirements and the main triggers that make a project ineligible, or non-warrantable, under Fannie Mae's Selling Guide.
| Fannie Mae Standard | What the Rule Says |
|---|---|
| Unfunded critical repairs | Projects with unfunded critical repairs exceeding $10,000 per unit due within 12 months are ineligible. |
| Assessment delinquencies | Under a Full Review, no more than 15% of units may be 60 or more days past due on HOA assessments. |
| Replacement reserves under 10% | Under a Full Review, the association budget must fund replacement reserves of at least 10% (or meet Fannie Mae's reserve-study alternative). |
| Single-entity ownership concentration | Ineligible if a single entity owns more than 2 units in a 5–20 unit project, or more than 20% of units in a project of 21 or more units. |
| Commercial or nonresidential space | Ineligible if commercial or nonresidential space exceeds 35% of the project. |
| Non-incidental HOA business income | Ineligible if the HOA receives more than 10% of its budgeted income from non-incidental business operations. |
| Pending litigation | Ineligible when there is pending litigation involving safety, structural soundness, habitability, or functional use of the project. |
| Hotel or split-ownership features | Projects with rental pooling, hotel services, HOA hotel licensing, timeshare, fractional, or continuing-care structures are ineligible under Fannie Mae's project standards. |
FHA Approved Condos in Texas & Single-Unit Approval
Whether you are looking at a condo in Houston, Dallas, or San Antonio, FHA financing depends on the project. Under HUD's condo rule, effective October 15, 2019, there are two paths to an FHA condo loan: a unit in an FHA-approved project, or a Single-Unit Approval.
| Question | How FHA Rules Work |
|---|---|
| How do I search FHA-approved condos in Texas? | You or your lender can search HUD's FHA-approved condominium lookup tool (entp.hud.gov/idapp/html/condlook.cfm) to check a project's approval. |
| What does full FHA project approval require? | HUD requires a minimum of 50% owner-occupied units for most approved projects, limits FHA insurance to up to 50% of units in an approved project, and requires recertification every 3 years. |
| What if my Texas condo is not FHA-approved? | Your lender can evaluate the unit for FHA Single-Unit Approval (submitted on Form HUD-9991). The project must be complete and ready for occupancy, have at least 5 dwelling units, and not be manufactured housing. |
| How many units can use Single-Unit Approval? | For unapproved projects, FHA concentration is capped at a maximum of 10% of units in projects with 10 or more units, or a maximum of 2 FHA-insured units in projects with fewer than 10 units. |
| Which unapproved buildings can use Single-Unit Approval? | The project must have never been approved under HRAP/DELRAP, or have an approval status that is Expired, Rejected, or Withdrawn, and it must meet HUD's subset of owner-occupancy and financial condition standards. |
Texas Property Code Resale Certificates & HOA Rules
Texas condominiums with declarations recorded on or after January 1, 1994 are governed by the Texas Uniform Condominium Act (Texas Property Code Chapter 82), and listed sections, including the §82.157 resale certificate rule, also apply to older condos for events on or after that date. Before a non-declarant owner signs a contract or conveys a unit, Texas law requires specific disclosures that directly affect your mortgage review.
| Texas Rule (Property Code Ch. 82) | What Buyers Need to Know |
|---|---|
| Resale certificate timing (§82.157) | The seller must give the buyer the declaration, bylaws, association rules, and a resale certificate prepared no more than 3 months before delivery. The association must furnish the certificate within 10 days of the owner's written request. |
| Maximum resale certificate fee (§82.157) | Texas law caps the condo association's fee to prepare the resale certificate at $375. (If the association fails to provide it within 10 days, the seller may provide a sworn affidavit instead.) |
| Financials & reserves on the certificate | The certificate must state the current operating budget and balance sheet, reserves, assessments and unpaid amounts, other unpaid fees, and approved capital expenditures for the next 12 months. |
| Legal, insurance & transfer disclosures | The certificate also discloses unsatisfied judgments, pending lawsuits, insurance coverage, government code-violation notices, leasehold terms, any right of first refusal, and all transfer-related fees. |
| Buyer and lender protection (§82.157) | A buyer, lender, or title insurer who relies on the resale certificate is not liable for debts it does not disclose. |
| Condo assessment liens (§82.113) | Condo assessments are a personal obligation of the unit owner secured by a continuing lien on the unit, rents, and insurance proceeds. That lien has priority over other liens except listed exceptions such as property taxes. |
Check These Before Buying a Condo in Texas
Texas Resale Certificate (§82.157)
Confirm the certificate was prepared not more than 3 months before it was delivered, and review the current operating budget, balance sheet, and reserves.
12-Month Capital Expenditures & Suits
Check the certificate for approved capital expenditures over the next 12 months, unsatisfied judgments, and any pending lawsuits.
Fannie Mae Waiver Eligibility
Buying a detached condo, a unit in a 2–4 unit project, or a unit in a 5–10 unit project that is not part of a larger development or master association? Fannie Mae waives project review for these.
Leasing & Local STR Rules
Buying an investment condo in Austin, Dallas, Houston, San Antonio, or on the Gulf Coast? Check both the condo declaration and city short-term rental permit and hotel tax rules.
Buying a Texas Condo With FHA?
Whether your building is already on HUD's approved list or needs a Single-Unit Approval review, we can check the condo project and your FHA eligibility before you make an offer.
Check Your FHA EligibilityHow to Finance a Texas Condo
- 1
Share the Condo Project Address
Send us the building name and address in Austin, Dallas, Houston, San Antonio, the Gulf Coast, or anywhere in Texas. We help check HUD's FHA-approved list and whether Fannie Mae waives or requires a project review.
- 2
Review the Texas Resale Certificate & HOA Docs
Under Texas Property Code §82.157, the association must furnish the resale certificate, which includes the operating budget and balance sheet, within 10 days of the owner's written request. Review reserves, unpaid assessments, pending suits, and insurance with your lender.
- 3
Compare Loan Programs
If the project meets agency standards, you may be able to use conventional, FHA (including Single-Unit Approval), or, if eligible, VA financing. If not, we help you compare non-warrantable or DSCR options.
- 4
Complete Appraisal, Project Sign-Off & Closing
While the appraiser values the unit, underwriting completes the lender's condo project review (or the Form HUD-9991 submission for an FHA Single-Unit Approval) before closing.
Related Texas Guides
FHA Loans in Texas
How FHA loans work in Texas, including down payment rules and FHA condo approvals.
Read Guide
VA Loans in Texas
No-down-payment VA financing for eligible Texas veterans and active-duty service members.
Read Guide
Texas DSCR Loans
Qualify for a Texas rental condo based on property cash flow instead of personal tax returns.
Read Guide
Texas Conforming Loan Limits by County (2026)
Check current county-by-county conforming loan limits across Texas.
Read GuideFrequently Asked Questions
Quick answers to the questions Texas homebuyers ask us most. Can’t find what you’re looking for?
Talk to an Expert"Warrantable" is industry shorthand for a condo in a project that meets Fannie Mae's project standards. Under Fannie Mae's Selling Guide, a project is ineligible (non-warrantable) if commercial space exceeds 35%, a single entity owns more than 20% of units in a 21+ unit building (or more than 2 units in a 5–20 unit building), unfunded critical repairs exceed $10,000 per unit due within 12 months, or there is pending litigation over safety or structural soundness. Under a Full Review, the HOA budget must also fund replacement reserves of at least 10% (or meet the reserve-study alternative), and no more than 15% of units can be 60 or more days past due on assessments.
Possibly, through FHA Single-Unit Approval. Under HUD's condo rules, a lender can submit Form HUD-9991 for an individual unit in an unapproved project if the building is complete, has at least 5 dwelling units, is not manufactured housing, and meets HUD's owner-occupancy and financial standards. FHA concentration under Single-Unit Approval is capped at 10% of units in projects of 10 or more units, or a maximum of 2 FHA units in projects with fewer than 10 units.
Under Fannie Mae Selling Guide topic B4-2.1-02, project eligibility review is waived for detached condo units, units in 2-to-4-unit condo projects, and units in 5-to-10-unit projects that are not part of a larger development or master association. It is also waived for certain Fannie-to-Fannie limited cash-out refinances up to 80% loan-to-value.
Under Texas Property Code §82.157, a condo seller must provide the buyer with the declaration, bylaws, rules, and a resale certificate prepared no more than 3 months before delivery. The certificate covers the operating budget, balance sheet, reserves, unpaid assessments, pending lawsuits, insurance, and approved capital expenditures for the next 12 months. The association must deliver it within 10 days of the seller's written request, and its fee for the certificate is capped at $375.
Often, yes. A VA purchase loan requires no down payment as long as the sales price is not higher than the appraised value, and no PMI; ask your lender how the specific condo project will be reviewed. The Texas Veterans Land Board (VLB) Veterans Housing Assistance Program can also be used on a primary-residence condominium or townhome in Texas for eligible borrowers, offered in conjunction with a VA, FHA, or conventional loan through a VLB participating lender (certain restrictions apply).
First, confirm that the condominium declaration and association rules allow leasing. Second, remember that Texas residence homestead property tax exemptions require the owner to occupy the home as a principal residence, so non-homestead rental condos do not receive the homestead exemption. Finally, if you plan to operate a short-term rental (fewer than 30 consecutive days), the 6% Texas state hotel occupancy tax generally applies on rooms costing $15 or more per day, along with city registration, zoning, and local hotel tax rules in cities like Austin, Dallas, Fort Worth, Houston, San Antonio, and Galveston.
Want Us to Check Your Texas Condo Building?
Send us the condo project you're considering — we'll check FHA, VA, conventional, and non-warrantable options before you make an offer.