FHA Condo Approval Specialist: FHA Condo Approvals – Live/Work Condominium Projects

FHA Condo Approvals – Live/Work Condominium Projects

FHA Condo Approvals – Live/Work Condominium Projects

Prior to HUD’s release of Mortgagee Letter ML11-22, there existed no guidance for Live/Work Condominium Projects.  HUD considers Live/Work Projects to be those which have legally-designated units within the project that allow for non-residential use within a primarily residential project.

HUD does allow Live/Work Projects to be eligible for approval given that ALL of the following criteria are met:

  • Must be approved using only the HRAP (HUD) processing option.
  • The condominium declaration must state that the non-residential (work) space may not exceed 25% of the unit’s total floor area.
  • The work space may not exceed 25% of the project’s total floor area.
  • The non-residential work use must be subordinate to the units’ residential use and character.

The last requirement is interesting as it is somewhat subjective.  What HUD is saying is that the units that have non-residential use must have the look and feel of a residence that also happens to house a business or have an element of non-residential use.  The units must not look like a business where someone also lives.

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 1 commentReadySetLoan Condo Approval Team • October 11 2011 02:10PM


These can be difficult so you definately need someone who knows what they are doing working on the loan.

Posted by Chuck Carstensen, Minnesota Real Estate Expert (RE/MAX Results) over 7 years ago