An FHA-approved condo qualifies for purchase with an FHA loan, which has flexible credit and down payment requirements. Condos must meet FHA criteria, including limits on FHA-insured units, reserve funds, owner occupancy, and insurance. Approval can be for entire projects or individual units. FHA loans require mortgage insurance and have limited condo availability. Conventional loans may be preferable for those with stronger credit. HOA fees impact borrowing power.