Can I do a loan in a condominium project that is not FHA approved?

To be eligible for FHA insurance a condominium project must meet all condominium requirements and be approved by FHA or an unconditionally approved Direct Endorsement lender, as outlined in Mortgagee Letter (ML) 11-22, ML 12-18, ML 15-27 and ML 16-15.

FHA case numbers cannot be requested unless the project is approved. Expired, withdrawn or projects exceeding the FHA concentration percentage will not have case numbers assigned.

Exceptions to this requirement are for FHA-to-FHA streamline refinance transactions, HUD Real Estate Owned (REO) transactions, and those projects meeting the site condominium definition and requirements.

For more information regarding condominium projects refer to:
  • The FHA Condominium Mortgage Insurance page, including the Waiver of Insurance Requirements in ML 11-22 for Manufactured Housing, Detached and Common Interest Condominium Projects 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-03922