FHA Condo Approval Specialist: FHA Condo Approvals – Recent Email Inquiry: Site Condominiums

FHA Condo Approvals – Recent Email Inquiry: Site Condominiums

FHA Condo Approvals – Recent Email Inquiry: Site Condominiums

Here is another recent email inquiry from a gentleman attempting to purchase a Site Condominium with an FHA loan and was encountering troubles.  He asked questions pertaining to the HOA paying for the insurance of the units and if it would make a difference if the unit owner has HO6 insurance.


I am going through escrow on a property that is a site condo.   I had questions on one of the requirements.   The HOA currently procures the insurance and organizes landscaping but it is funded through HOA dues.   Does this mean that the maintenance and insurance is not the sole responsibility of the homeowner or are there nuances with the requirement?  

Are there any options if the property does not qualify that can be processed rather quickly? 

My response:

In order for a project to qualify as a “site condominium”, the insurance of each unit must be the responsibility of the respective unit owner. According to HUD's guidelines, it doesn't state that this includes the landscaping but I have learned from HUD that the owner is responsible for everything that is withing the unit boundaries (footprint) including the land.

If the HOA pays for the insurance of the units then the project is not site condos and full project approval is required.

I wish I had better news for you, sorry.

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

ready set loan condo team


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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 • June 14 2013 08:04AM


Your clients are very fortunate to have you as a resource. No one know the condominium approval process better than you do.

Make it a great weekend!

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) almost 6 years ago