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FHA Single-Unit Approval

FHA announced in FHA INFO 19-41 revisions to the Condominium Project Approval Requirements. Effective with case numbers assigned on and after 10/15/19, FHA will insure mortgages on Condominium Units approved in accordance with the standards outlined below for Site Condominiums.

A Site Condominium refers to:

  • a Condominium Project that consists entirely of single family detached dwellings that have no shared garages, or any other attached buildings; or
  • a Condominium Project that:
    • consists of single family detached or horizontally attached (townhouse) dwellings where the unit consists of the dwelling and land;
    • does not contain manufactured housing units; and
    • is encumbered by a declaration of condominium or condominium form of ownership.

FHA will insure mortgages on Condominium Units approved in accordance with the standards outlined below for Single-Unit Approval. Single-Unit Approval refers to the approval of a unit in a Condominium Project that is not already a HUD Approved Condo Project at the time of case number assignment. To be eligible, the Condominium Project must have:

  • A CO that was issued at least 1 year prior or has been occupied;
  • Must have at least 5 units;
  • Must not be a Manufactured Home;
  • Does not have Ineligible Characteristics; or
  • Located in an unapproved phase of a Condominium Project with an approved Legal Phase.

Highlighted requirements are below. Refer to the “FHA Single-Unit Approval” section of the Fairway underwriting guidelines for detailed information and additional requirements.

  • Provide the following to This email address is being protected from spambots. You need JavaScript enabled to view it.:
    • Completion of HUD-9991 – Sections 2, 3 and 4 to be completed, signed and dated by HOA or management company; and
    • Provide insurance, financials and legal documents for review by FWL Project Review Team;
    • Property must meet the following (below are some of the main requirements of this review, this is not an all-encompassing list and additional requirements will apply):
      • FHA concentration can be no more than 10% of the project (2 units for project with 5-9 units)
      • Owner Occupancy of the project need to be at minimum of 50%
      • No more than 15% of the units can be 60 days or more delinquent in payment of their HOA dues
      • Individual Owner Concentration can be no more than 10% (1 unit for projects with 5-20 units)
      • Commercial Space in the building/project cannot exceed 35% and needs to be documented to be financially separate from the residential units (additional financial documents and legal documents will be required)
      • Insurance, financials, and legal documents review required
      • Note: AUS approval required or the max LTV of 90% if a manual UW 
      • Do not request the FHA case number, case numbers will be issued upon FHA approval.

Please contact your Regional Account Manager should you have any questions related to this Client Announcement.



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