Updated October 15, 2026. Examples are illustrations, not quotes. See the disclaimer at the end.

Condos are one of the more accessible ways into homeownership in Los Angeles. In neighborhoods like Koreatown, Mid-City, Palms and North Hollywood, you can often find well-located condos in the $400,000 to $650,000 range. But a condo purchase adds a layer that most first-time buyers aren't warned about: the building has to qualify for your loan, not just you. And the monthly HOA dues change the math more than most people expect.

Before you fall in love with a unit, run the numbers with the HOA included. Use the mortgage calculator and add the dues to the payment. HOA dues count in your monthly housing payment and in your debt-to-income ratio (DTI). In LA they commonly run several hundred dollars a month, and some buildings with amenities run well over $1,000.

What FHA condo approval means

An FHA loan can only be used in a condo project that HUD has approved, or on a single unit that qualifies under the single-unit process described below. For project approval, the HOA or a lender submits the association's financials, reserve information, delinquency rate, owner-occupancy percentage and insurance documentation. HUD reviews the file, and approved projects appear on HUD's list.

This matters because many LA condo buildings are not on the list. If you want a unit in an unapproved building, you have four choices: use a conventional loan, which has its own project rules but is often more flexible; ask whether the unit qualifies for single-unit approval; find a different building; or wait for the HOA to get approved, which can take months. See our FHA loan page for the program basics, including the 3.5% minimum down payment.

FHA single-unit approval (the "spot approval" workaround)

HUD's single-unit approval process lets a lender finance one unit with FHA even when the whole project isn't approved. It has its own requirements. They generally involve a limit on how many units in the building can carry FHA loans at one time, a minimum percentage of owner-occupied units, and no major litigation or financial red flags at the association. The exact thresholds have changed over the years, so I check them against HUD's current rules for each building.

Single-unit approval is handled by the lender, and it can add roughly a couple of weeks to your timeline. Not every lender offers it, and not every building qualifies, but it opens up units that would otherwise be off limits to FHA buyers. Ask me before you write an offer if you're counting on it.

Conventional condo loans: warrantable vs. non-warrantable

Conventional loans (Fannie Mae and Freddie Mac) also review the project. A building is warrantable when it meets their guidelines: adequate reserves, healthy owner-occupancy, limits on how many units a single owner holds, adequate insurance, and no problem litigation or unfunded structural issues.

A warrantable condo can usually be financed with pricing close to a single-family home, though conventional pricing adjustments can apply to condos at higher loan-to-value ratios. A non-warrantable condo, one that fails a guideline, typically needs a portfolio or non-QM loan, often with a higher rate and a larger down payment. Many newer LA high-rises are non-warrantable at first because one developer or investor owns a large block of units during the initial sales period. For non-QM options, see our non-QM loan page.

Check the HOA's financial health before you offer

The HOA's finances are part of your investment. An underfunded reserve account makes a special assessment more likely: a one-time charge to all owners for a major expense the reserves can't cover. In LA, assessments for items like roofs, garages and plumbing risers can run from a few thousand dollars to well over $50,000 per unit.

During your inspection period, ask for:

the most recent reserve study,
the operating budget and year-to-date financials,
the delinquency rate, meaning the share of owners behind on dues,
the HOA's insurance summary, and
any pending or planned special assessments and litigation.

A delinquency rate above about 15% (owners 60 or more days behind) is a red flag for both the building's finances and loan approval. Your agent or escrow officer can request these documents, and I can often tell you early which buildings have had trouble on the financing side.

How HOA dues affect what you can borrow

Lenders include HOA dues in your monthly housing expense. They sit alongside your mortgage payment, property tax and insurance, and they count toward your DTI. Here is what that does in practice, using illustrative numbers.

Say your gross income is $10,000 a month, you have a $400 car payment, and the lender's back-end DTI limit is 45%.

Total monthly debts allowed: $4,500.
After the car payment, that leaves $4,100 for housing.
With a $600 HOA, you have about $3,500 left for mortgage payment, taxes and insurance.
With no HOA, you'd have the full $4,100.

At roughly $7.80 a month per $1,000 of price (5% down, 6.75% rate, typical taxes, insurance and mortgage insurance), that is about $450,000 of purchase price with the HOA versus about $525,000 without it. The $600 in dues cost you around $75,000 of purchasing power.

It also changes how you compare a condo to a house. Using the same assumptions:

Monthly cost	$580,000 condo	$655,000 house, no HOA
Mortgage, taxes, insurance, PMI (about $7.80 per $1,000)	about $4,520	about $5,110
HOA dues	$600	$0
Approximate total	about $5,120	about $5,110

Illustrative figures. Condo insurance is often lower than house insurance, so your actual numbers will differ.

A condo that looks $75,000 cheaper can cost about the same each month as a house once dues are counted. If you are weighing a condo against renting, read our post on renting vs. buying in Los Angeles, where HOA dues are the reason a low-priced condo can take a long time to beat rent.

New-construction condos

New buildings are often not warrantable during the initial sales period because the developer or related entities hold a high share of units. That can make conventional or FHA financing hard or impossible until enough units have sold to third-party buyers. Ask the developer what financing is available and whether the project already has FHA or Fannie Mae approval.

Some developers work with preferred lenders who have already reviewed the project. That can be convenient, but their offer isn't always the best. Compare it with a conventional, non-QM or portfolio quote from a broker before you commit.

Condos above $1 million

On the Westside and in other premium areas, condos often list above $1 million, which puts you in jumbo territory. Jumbo lenders set their own project rules, and many are stricter than Fannie Mae on owner-occupancy and reserves. A building approved for conventional financing may still need extra documentation or more down under a particular jumbo lender's overlay. See our jumbo loan page.

Conclusion

A condo can be a smart first purchase in Los Angeles, but the building has to qualify and the HOA has to fit your budget. Find out early whether a building is FHA-approved, warrantable or needs single-unit approval or another program. It saves time and keeps you from losing a deal in escrow.

If you have a specific building in mind, book a free consultation and I will run the project eligibility check before you spend money on an offer and inspections. If you're ready to start, you can apply online. If you also carry student debt, read how lenders count student loans. For more first-time buyer resources, see our first-time homebuyer page.

Anna Kara Inc., branch of Equity Smart Home Loans Inc. NMLS #1241473 | DRE #01924739. Equity Smart NMLS #856170 | DRE #01906808.

Disclaimer: This article is for general information only and is not a loan offer, commitment or financial advice. Examples are hypothetical and do not reflect current rates, fees or your situation. FHA, Fannie Mae, Freddie Mac and lender requirements change and depend on your credit, income, the property and loan approval. Equal Housing Lender.

Frequently asked questions

HUD publishes a condo project lookup where you can search by building name or address. If the building isn’t listed, ask your lender whether the unit can qualify for single-unit approval. Not every lender offers it, so confirm before you get attached to a specific unit.
Yes, with an FHA loan if the building is approved or the unit qualifies for single-unit approval, and you meet FHA requirements, including a minimum 580 credit score. Conventional loans allow 3% to 5% down on warrantable condos for qualifying buyers. Non-warrantable condos usually need more, often 10% to 25% depending on the lender and program.
Yes. Dues are part of your monthly housing payment and your DTI, so a higher HOA means a smaller mortgage payment at the same income. A $500 HOA affects your DTI much like a $500 car payment.
It is a one-time charge to owners for costs the HOA’s reserves can’t cover. Pending or recent assessments can affect loan approval, and lenders may require them to be disclosed, paid or addressed before closing. An assessment that surfaces late in escrow can force a renegotiation or sink the financing, so ask for the HOA documents early.