FHA Condo Approval Specialist: FHA Condo Approvals – Who May Submit a Condo Project Approval?

FHA Condo Approvals – Who May Submit a Condo Project Approval?

FHA Condo Approvals – Who May Submit a Condo Project Approval?

fha condo approvalIn the recent Mortgagee Letter, HUD clarified who may and may not submit applications for approval of a condominium project.  Previous to the release of the Mortgagee Letter, HUD did not place limitations on who may submit applications.

HUD now limits the submission of applications to:

  • Builders/Developers
  • Homeowner’s Associations (HOA)
  • Management Companies (MC)
  • Project Consultants
  • Attorneys acting as an agent for the developer/builder, HOA or MC

HUD will not process applications directly from:

  • Borrowers
  • Homeowners
  • Sellers
  • Real estate agents

HUD does say that it “may determine, on a case-by-case basis, that alternative sources of submission are appropriate.”

HUD also now requires that the person submitting the application certify that he/she has reviewed the documentation and that the project qualifies for approval or recertification.

Why would HUD limit who can submit applications for approval?

With their processing centers becoming inundated with applications for approvals and recertifications, it only seems logical that HUD would not want any John or Jane Doe submitting applications.  If HUD allowed anyone to send in applications, its project reviewers would get bogged down reviewing projects that are not approvable.  This would extend the processing time for projects which are approvable.

It is important that projects work with a professional who understands the guidelines and the process and who has a proven track record, especially when time is of the essence.  A local mortgage broker recently posted an article called “Condo Chaos” which provides three specific examples of what can happen when someone who is inexperienced submits an application for project approval to HUD.

Image courtesy of Stuart Miles/freedigitalphotos.net

The Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their approvals with FHA and the VA or become recertified with FHA.  We have assisted nearly 200 condominiums and we can help your association.


ReadySetLoan is an active member of the Connecticut and New England chapters of the Community Associations Institute (CAI) and is a frequent contributor to Common Interest Magazine as an expert in FHA/VA condominium project approvals.


Please contact us with any questions regarding FHA or VA condominium project approvals.  You can email me at askeric@readysetloan.com or call me at 404-433-4565. I will be happy to answer any of your questions.


FHA/VA Condo Approval Specialist

404-433-4565 Cell Phone

860-644-3772 Fax Phone

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 Check out our article in Common Interest magazine on page 19!

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Comment balloon 2 commentsReadySetLoan Condo Approval Team • August 05 2011 01:53PM


Eric, the restrictions just seem to make it harder and harder to get approvals for condo sales. You would think the government would have figured out by now housing is one of the most important industry's to turn around this crappy economy...and look at the road blocks in a serious and stream line way.

Posted by Steve Loynd, 800-926-5653, White Mountains NH ( Alpine Lakes Real Estate Inc., ) over 7 years ago

Absolutely, Steve.  But as a peer who follows governmental policies, we know that they can sometimes be counter-intuitive.  Thank you for your comment.

Posted by ReadySetLoan Condo Approval Team, The FHA/VA Condo Project Approval Specialists (ReadySetLoan Condo Team LLC) over 7 years ago