Can I refinance a loan in a condominium project whose approval has been withdrawn?

A Streamline Refinance of an FHA-insured mortgage does not require Condominium Project Approval or Single-Unit Approval. 
 
If a project is no longer approved or does not meet approval criteria, FHA-insured units in the project remain eligible for FHA-to-FHA streamline refinances.
 
If the Unit is in a Condominium Project that has an FHA Condo ID, regardless of its present status, the Mortgagee must enter the FHA Condo ID in FHA Connection when the FHA case number is requested.
 
For case numbers assigned October 15, 2019 and after, additional information regarding condominium project eligibility and refinance can be located in: Handbook 4000.1, Section II.A.8.p.i and II.A.8.p.iv.(B) available at: 

https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh 

For case numbers assigned prior to October 15, 2019, information is available in:
  • Mortgagee Letter (ML) 2011-22 Condominium Approval Process for Single Family Housing – Consolidation and Update of Approval Requirements and the attached Condominium Project Approval and Processing Guide provides the requirements and procedures for obtaining FHA condominium project approval.
  • ML 2012-18 Temporary Approval Provisions for FHA Condominium Project Approval provides temporary condominium project approval guideline changes to address current housing market conditions.
  • ML 2015-27 Additional Temporary Approval Provisions for FHA Condominium Project Approval
  • ML 2016-15 FHA Condominium Project Approval – Owner Occupancy Requirements modifies the Condominium Project Approval and Processing Guide, attachment to ML 2011-22, in order to implement the Housing Opportunity Through Modernization Act of 2016 (HOTMA) requirements and establish the required owner-occupancy percentage that must be met for purposes of FHA project approval.
Note: The Temporary Provisions in ML 12-18 and ML 15-27, as modified by ML 2016-15, are effective until HUD publishes and implements the Final Rule of Condominium Project Approval through publication of the Condominium Project Approval Section of HUD Handbook 4000.1, as extended by ML 2017-13.  Mortgagee Letters are available at: 
 

For more information regarding condominium projects refer to:

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-02382