How will a Mortgagee know when the maximum FHA condo project Insurance Concentration has been met?

The guidance in this FAQ is effective for case numbers assigned on or after October 15th, 2019.

For Approved Condominium Projects, FHA may suspend the issuance of new FHA case numbers for a mortgage on a Unit in a Condominium Project where the FHA Insurance Concentration is greater than 50 percent of the total number of Units in the Condominium Project.

Mortgagees with access to FHA Connection (FHAC) will be able to view the preset maximum FHA Insurance Concentration percentage on the Condominium Project Maintenance page under “Project Characteristics” in FHAC. In addition, Mortgagees will also be able to view the:

  • Total FHA units in Project,
  • Total Units in Project, and
  • FHA Concentration of the Project.
Additional information regarding FHA Insurance Concentration in Approved Condominium Projects refer to:  Handbook 4000.1, Sections II.A.8.p.ii(B) and II.A.8.p.iii(D)(1) for Single-Unit Approval (SUA) processing available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

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-03236