P. 1
Industry Condominium Approval Fact Sheet

Industry Condominium Approval Fact Sheet

|Views: 14|Likes:
Published by KathleenCooper
Thank you mortgagebuddy John Saari!
Thank you mortgagebuddy John Saari!

More info:

Published by: KathleenCooper on Nov 09, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

05/12/2014

pdf

text

original

INDUSTRY FACT SHEET: CONDOMINIUM PROJECT APPROVAL

Approval
Processing
Options
Projects can be approved by two methods:
(HRAP): HUD Review and Approval Process ÷ HUD Staff
(DELRAP): Direct Endorsement Lender Review and Approval Process ÷ DE Lenders
Ineligible
Projects
A project is ineligible where the primary usage is not residential
General Project
Approval
Requirements
Minimum number of units: Project must consist of two or more units.
Right of First Refusal: A right of first refusal is permitted unless it violates the Fair Housing
Act.
Commercial Space Limits: No more than 25 percent of the property's total floor area can be
used for commercial purposes.
Investor Ownership Limits: No more than 10 percent of the units may be owned by one
investor.
Delinquent Home Owners Association (HOA) Dues: No more than 15 percent of the total
units can be in arrears (more than 30 days past due) of their condominium association fee
payments.
Pre-Sale Requirement: At least 30 percent of the total units must be sold prior to endorsement
of a mortgage on any unit.
Owner-Occupancy: At least 50 percent of the units of a project must be owner-occupied or
sold to owners who intend to occupy the units.
Maximum Concentration: No more than 50 percent of the total units in an approved project
may have outstanding FHA case numbers or active FHA insured loans. New FHA case
numbers will not be assigned when the 50 percent threshold has been reached.
Insurance Coverage: The condominium project must be covered by hazard, flood, liability and
fidelity insurance as applicable.
Construction
Types

Proposed
Under Construction
New (less than one year)
Existing
Substantial Rehabilitation

Detailed
Information

Mortgagee Letters - ML 2009-46 A & ML 2009-46 B
https://www.hud.gov/offices/adm/hudclips/letters/mortgagee/index.cfm

FHA Condominium Mortgage Insurance Page
https://www.hud.gov/offices/hsg/sfh/condo/index.cfm

Condominium List - Public Search Site
https://entp.hud.gov/idapp/html/condlook.cfm

Lenders, industry members or consumers can email questions to the FHA Resource Center at
info@fhaoutreach.com or call toll free 1-800-CALLFHA (1-800-225-5342)

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->