Condos and townhomes are often more affordable than single-family homes, which makes them a great option if you have lower credit or limited savings. FHA loans can make buying one easier by allowing low down payments and more flexible credit requirements. But here’s the catch—not all condos or townhomes are FHA-approved. The community must meet certain financial standards, like having enough reserve funds and being mostly owner-occupied. A loan officer or Realtor can help you confirm if a property qualifies early on, so you can avoid surprises during the buying process.