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 2 weeks to 30 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 [email protected]