FHA Condo Approvals – Rejected!!
In working with condominium projects for FHA/HUD condo approvals, something occurs very often: the project gets Rejected.
Let me explain what this REALLY means because Homeowners Associations have been pretty perturbed with me in the past. This prompted me to notify the HOA’s that they can almost count on the project being Rejected prior to it being Approved.
When HUD receives an application package for a condominium project, it logs it and places it in queue with a project reviewer. This is also when HUD sends out an email communication to the contact person. The email says that it will take up to 30 days to review the file (although I haven’t seen it take longer than 3 weeks.)
If the package is incomplete or if the project reviewer requires more information, a “Missing Items” email will be sent to the contact person. In it, HUD requests that the missing items be submitted within 48 hours of the issuance of the email. If the missing items are not submitted within 48 hours, the project is Rejected and an email is sent to this effect.
I have had experiences when I have submitted the missing items within 48 hours – and had delivery confirmation to prove it! – and yet the project is still placed in Rejected status. When I inquired with HUD regarding this, I was told that the missing items wouldn’t be reviewed for a couple of weeks anyways so I shouldn’t worry about the change in status.
Actually, the 48-hour window is really meaningless. They could change it to 48 minutes and it would have the same effect!
The Rejection status is also meaningless in this situation. If the missing items are submitted within 12 months of the issuance of the Rejection email, the project will be approved.
Of course, a project can be rejected if it is not approvable. Happily, this has never happened to any condominium project with whom I have worked.
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 email@example.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
Check out our article in Common Interest magazine on page 19!