Philadelphia has condos from Center City towers to converted churches and schools in Fishtown and Northern Liberties. Buying the dated unit in a good building is a smart way in, and a renovation loan can finance the kitchen, baths, and flooring at the same time.
Step one: does the building qualify?
- FHA: the project must be on FHA's approved condo list, or the unit must qualify for FHA single-unit approval. We check this before you write an offer.
- Conventional (HomeStyle and CHOICERenovation): the building must meet Fannie Mae or Freddie Mac standards. That includes adequate reserves, limited delinquencies, no major litigation, and adequate insurance. Many Philadelphia buildings that aren't FHA-approved still meet these standards.
What a condo renovation loan can cover
Interior work only:
- Kitchens and bathrooms
- Flooring, drywall, paint, and interior doors
- In-unit HVAC, water heater, and electrical
- Windows, when they belong to the unit under the condo documents
Roofs, facades, hallways, and other common elements belong to the association and can't be financed on your loan.
The Philadelphia condo checklist
- Condo documents and budget. Ask for the declaration, bylaws, budget, and latest financials early.
- Association renovation rules. Work hours, elevator reservations, contractor insurance, and approval of plans.
- Special assessments. Know about any pending assessments before you commit.
- Permits. Interior renovations with plumbing or electrical changes in the city need L&I permits.
Which program
For interior projects under $75,000 in an FHA-approved building, the Limited 203k is simple and fast. For conventional buyers, larger budgets, or buildings without FHA approval, use HomeStyle.
Frequently asked questions
Can I use a 203k on a condo in Philadelphia?
Yes, for interior work, if the condo project is FHA-approved or the unit qualifies for FHA single-unit approval. Work on common elements like the roof or exterior walls isn't eligible.
What if the building isn't FHA-approved?
Look at HomeStyle or CHOICERenovation. Conventional condo eligibility has different requirements, and many buildings that aren't FHA-approved still qualify conventionally.
Does the condo association have to approve my renovation?
Usually, yes. Most associations require approval for plumbing, electrical, flooring, and wall changes, and some require their own insurance certificates from contractors. Get the rules early.