The guidance in this FAQ is effective for case numbers assigned on or after October 15th, 2019.
Single-Unit Approval (SUA) refers to approval of a Unit in a Condominium Project (Project) that is not in an FHA-Approved Condominium Project.
The Mortgagee must verify the following:
Condominium Project Approval Status
The Mortgagee must confirm the Project is not in the list of FHA-Approved Condominium Projects at the time of case number assignment.
A Project that is listed in the Condo Lookup is not approved if the “Status” type is:
- Rejected, including “Registered Single-Unit”
The mortgage application receives an Accept from TOTAL Mortgage Scorecard or has a maximum Loan-to-Value (LTV) of 90 percent.
- has a Certificate of Occupancy (CO) that was issued at least one year ago or has been occupied;
- has at least five Units;
- is not a Manufactured Home;
- does not have Ineligible Characteristics (see Handbook 4000.1, Section II.C.2.a.ii.)
- FHA Insurance Concentration
- Owner-Occupancy Percentage
- Recorded Documents
- Transfer of Control
- Financial Condition
- Financial Distress Events
- Individual Owner Concentration
- Commercial/Non-Residential Financial Independence
- Insurance Coverage
- Properties in Coastal Barrier Resources System
- Special Flood Hazard Areas
- Commercial/Non-Residential Space
- Live/Work Unit
- Leasehold Interest
For more information regarding the Single-Unit Approval Process, please refer to: Handbook 4000.1, Sections II.A.8.p.iii available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
For additional information see:
- Mortgagee Letter 2019-13 is available at: https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
- The FHA Condominium Mortgage Insurance page available at: https://www.hud.gov/program_offices/housing/sfh/ins/sfh_ins_condominiums
- To search for FHA-approved condominiums please visit: https://entp.hud.gov/idapp/html/condlook.cfm
- To identify the jurisdictional HOC for the state where the condominium project is located you may go to: https://www.hud.gov/program_offices/housing/sfh/sfhhocs
- HQ Policy Determination