Is the HO-6 for a condo mandatory to be FHA approved?

Most Likely mandatory. It depends on what the HOA pays but in most cases the HOA pays for the insurance to cover the building and HO-6 covers the contents - sort of like renters insurance. It's generally pretty cheap about $150-$250/yr is all.

HO-6 is your insurance for the interior of the condo, if you had a fire in the kitchen that is what would cover the repairs. Typically it is a modest expense, but it depends on the specific condo and the interior value, the amount of coverage must be sufficient. There are much more significant issues for the property to be approved for FHA financing - so my advice is not to worry too much about that piece. Good luck!

Ps, I've seen the cost of that policy in our area as much as 600-800 yr - really depends on the spedifics of the property. - if you want, Call an insurance agent and get a preliminary estimate - you can start with whatever firm handles your car insurance.

Sometimes HO-6, or "walls in," coverage, is included in the HOA dues, sometimes not. If it's not, the additional cost isn't too great. I just completed a condo loan transaction and the HO-6 coverage wasn't part of the HOA dues. My client's homeowners insurance policy was going to be $488 annually, but because he had to also pay for the H0-6 coverage, it wound up being $587--about $8/mo. more. Give me a call 16/7, or email me your phone number so I can call you, and I'll be happy to discuss all aspects of your condo purchase loan with you. There is one in particular that you definitely need to know about to avoid the possibility of your loan not being completed despite how qualified you are for it. This was just experienced by my client and fortunately I knew how to successfully navigate him around this issue, so that his loan was finalized in less than 4 weeks. To learn more about me and our mortgage brokerage, click on my picture. When the next page pops up, click on "Website" and you will be redirected to ours. We work exclusively in CA and get loans done fast, typically in less than 30 days, at low interest rates and costs. Representing 46 quality lenders that offer more than 1,000 loan programs, we definitely have something for everybody.

Yes... The Association only covers "walls out". So if the places burns to the ground, they will rebuild the property. The HO-6 policy covers "walls in" - or all your personal property. This also includes some liability coverage (if someone gets hurt at your house), and theft. Another big benefit outside of the obvious is that most association policies actually have a big deductible that you are responsible for if there is a claim on the association. An HO-6 policy is generally under $200 a year. It is not a very smart idea to not have an HO-6 policy for your condo or townhouse. In MN, visit www.ReliableInsuranceMN.com for more info.