FHA Condo Approval
We process FHA submissions in house and submit them to the Department of Housing and Urban Development (HUD). Their review will likely take 30 to 45 days.
FHA condominium approvals are valid for the entire project for two years. Prior to December 2009, once approved a condo was always approved, but that is no longer the case. VA approvals are still permanent approvals.
There are three types of FHA approvals:
- If a condo is already FHA approved, then we simply need to have the management company complete a condominium questionnaire and document the condo master insurance policy. No other documents are usually required.
- If a condo is currently FHA approved but the approval has expired or is expiring in under six months, we will need to do a re-certification. The list of documents are shown below.
- If a condo has never been FHA approved, we will process a new submission and require the below list of documents.
FHMC – FHA Full Project Review Questionnaire (We will have the management company fill this out)
HOA Meeting Minutes – Covering most recent 12 months
o Current Year Adopted Operating Statement (Income/Expense Statement)
o Current Balance Sheet dated within 90 days
o Previous Fiscal Year End Operating Statement (Income/Expense Statement)
(Note: Bank statements or a reserve study may be required by FHA)
HOA Certificate of Insurance (NOTE: If the insurer is unable to include all required coverage and endorsements on the HOA’s master certificate of insurance declaration page then please obtain a complete and current copy of the HOA master insurance policy.)
o Borrower name and address listed
o Correct mortgagee clause and FHMC loan number
o $1 million in liability coverage ‘Per Occurrence’ with either ‘Separation of Insureds, or ‘Severability of Interest’ Endorsement
o 100% Replacement Cost Coverage (R/C); 125% Extended Replacement Cost Coverage (ERC); or Guaranteed Replacement Cost Coverage (GRC)
o Fidelity Bond/Crime/Employee Dishonesty (Required for projects with > 20 units) in an amount no less than the sum equal to 3 months aggregate assessments on all units plus balance of funds currently held in reserve account. Managing agent covered as additionally insured, if HOA engages the services of a management company.
o Managing Agent’s Fidelity Bond/Crime/Employee Dishonesty (Required for projects with > 20 units) in an amount no less than the sum equal to 3 months aggregate assessments on all units plus balance of funds currently held in reserve account. Required if HOA engages the services of a management company.
Current and Fully Executed Management Agreement (if applicable)
Recorded Project Legal Documents (Including all amendments and exhibits)
Developer/Builder/HOA Certification (Not required for re-certifications)
Recorded Plat Map & Condominium Site Plans (Not required for re-certifications)
FEMA Flood Map (to include NFIP map panel number & identify location of project) (Not required for re-certifications)
For new projects only the below items are also required (proposed construction, under construction, or fewer than twelve months old and never before reviewed by FHA)
Phase 1 Environmental Site Assessment (Completed within 12 months of submission)
o 92544 – Builder’s Warranty
o 92541 – Builder’s Plans & Specs
o 92010 – EEOC
o Attachment E – Developer/Builder Certificate of Condo Requirements
o Attachment F – Developer/Builder Pre-Sale Certificate
Certification of Occupancy
Questions? 240 479 7658 or firstname.lastname@example.org