FHA Approval

    The Basics of FHA Condo Approval

    If you are looking to use an FHA Loan, or obtain a Reverse Mortgage within a condominium association, the entire complex will need to be FHA approved. By now, you have probably already determined that your condo (or condo of interest) is not FHA approved, so here are the basics about the FHA approval process.

    • The FHA Approval process takes 2-4 weeks
    • Approval is good for 3 years
    • The Condo Management Company must provide these documents
    • Not all condominium complexes qualify for FHA Approval
    Get Started

    FHA Approval

    Will your Community Qualify?

    We won’t know if a Condo qualifies for FHA approval until we review the documents, and bounce them off the guidelines.

    We can advise you of the most common problems we face. Here are the “Show-stopper” issues we see:

    • Start the approval process to find out if your community qualifies
    • The condo MUST allow leasing in the community or they will not be eligible
    • The condo CANNOT have a Seasoning Clause in place
    • When a unit must be owner-occupied for 1 year before it can be leased
    • Must fund a reserve/savings account, funded by at least 10% of their budget
    • Board cannot have the power to approve of deny leasing, except to maintain a leasing cap
    Get Started

    The process of getting FHA Condo Approval generally takes between 2-4 Weeks.  Processing time will depend on:

    • How quickly we receive the Condo Documents from the Management Company
    • How eligible the community is, and what is needed to make them eligible
    • The caseload at FHA at any given time (maximum 30 days).

    It is possible for us to rush the application process through our office, however, there is no way to expedite a file through the FHA.

    The cost of FHA Approval depends on their current status with the FHA:

    • Condo that has never been approved – $850
    • One that has been expired over 6 months – $850
    • One that is not expired, but is up for renewal soon – $765
    • A condo that is expired, but for less than 6 months – 765
    • Brand new construction less than 1-year-old – $1,500

    The FHA certification will be good for 3 years.  During this time, anyone within the community can utilize the following:

    • FHA Insured Loan
    • Refinance with an FHA Insured Loan
    • Reverse Mortgage or HECM Loan

    To get started we will need a few things directly from the Condo Association.  This will include:

    • Step 1 Questionnaire
    • Some Documents related to the condo

    For the Step 1 Questionnaire, please complete our Get Started Form so we may provide you some information related to your specific condo.

    We won’t know if a Condo qualifies for FHA approval until we review the documents, and bounce them off the guidelines.

    We can advise you of the most common problems we face.  Here are the “Show-stopper” issues we see:

    • The condo MUST allow leasing in the community or they will not be eligible
    • The condo CANNOT have a Seasoning Clause in place
      • When a unit must be owner-occupied for 1 year before it can be leased
    • Must fund a reserve/savings account, funded by at least 10% of their budget
    • Board cannot have the power to approve of deny leasing, except to maintain a leasing cap

    Not ALL communities will qualify for FHA Condo Approval.  Most issues we encounter can be fixed, but some cannot.

    Helpful Resources

    Eligibility Requirements

    Required
    Documents

    Pros, Cons, and Misconceptions

    Frequently Asked Questions

    Condo Approval Guidelines

    Single Unit
    Approval

    Map of
    FHA Condos

    Get Started
    Apply Now

    Helpful Resources

    Eligibility Requirements

    Required
    Documents

    Pros, Cons, and Misconceptions

    Frequently Asked Questions

    Condo Approval Guidelines

    Single Unit
    Approval

    Map of
    FHA Condos

    Get Started
    Apply Now

    An Easy 3-Step Approval Process

    Step 1: Prequalify

    The Property Manager or Board Member completes our Eligibility Questionnaire. Our team reviews it to check if it meets the the FHA Condo Approval Guidelines.

    Step 2: Identify Issues

    Our team reviews your application for issues that might conflict with the FHA Condo Approval Guidelines and recommend fixes that help your community get approved.

    Step 3: Submission

    Our team builds and submits your application to the FHA for approval on your behalf. The process takes 2-3 weeks and once approved, your certificate will be sent directly to you!

    Get Started