Can I refinance a loan in a condominium project whose approval has been withdrawn?

If approval of a condominium project has been withdrawn, FHA will only issue case numbers and insure streamline refinance transactions for that condominium project.

However, under certain limited conditions, a condominium project that has been rejected or withdrawn may be reconsidered as outlined in Mortgagee Letter (ML) 2011-22 and its Attachment (Condominium Project Approval and Processing Guide)

If a project is withdrawn on the FHA-approved condominium list, the project will not be eligible for reconsideration unless the request meets the following. If the Project was: (based on the rejection or withdrawal date)
  • WITHDRAWN IN PREVIOUS 12 MONTHS: New/additional information (documentation) may be submitted to HUD for reconsideration only under the HUD Review and Approval Process (HRAP) option. A new Project Certification (Appendix A from ML 2012-18) is also required on reconsideration requests if the submitter of the reconsideration request is not the original package submitter.
  • WITHDRAWN MORE THAN 12 MONTHS: A new approval package may be submitted to HUD for processing.
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.

For more information regarding condominium projects refer to:
  • The FHA Condominium Mortgage Insurance page at https://www.hud.gov/program_offices/housing/sfh/ins/sfh_ins_condominiums
  • Mortgagee Letter (ML) 11-22 and Condominium Project Approval and Processing Guide
  • ML 12-18 Temporary Approval Provisions for FHA Condominium Project Approval
  • ML 15-27 Additional Temporary Approval Provisions for FHA Condominium Project Approval  
  • ML 16-15 FHA Condominium Project Approval – Owner Occupancy Requirements 
  • 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 https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

To search for approved condominiums please visit https://entp.hud.gov/idapp/html/condlook.cfm

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