Rules changed after the crash
After the crash of 2008-2009, the FHA (Federal Housing Association) decided to change many of the rules and especially those related to condominiums that became quite stringent.
Condominiums must re-apply every 2 years
One of the changes was to require the condominium associations (HOA—Home Owners Association) to re-apply for an FHA authorization once every other year. Prior to 2011, the FHA application was done once and it did not expire.
Less communities re-apply
This new burden to HOAs means that many more condominium communities do not apply for FHA Certification at all. The effect is that less and less condominium communities offer the ability for buyers to use an FHA Loan.
Only 16 accept FHA Loans in 2017
To give you an idea, there are only about 16 condominium associations that currently accept FHA Loans in the Sacramento area. This also means many people cannot benefit from purchasing a condominium, even if it were in their means with an FHA Loan.