Can a loan close if the condominium project approval expires after the case number is assigned?

If the FHA condominium project approval expires after a case number is assigned, the loan may close when the following criteria is met:
  • the loan level certifications are executed when the loan is approved (property and credit) and only minor conditions may be satisfied at closing; and
  • all other FHA requirements are met.

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) 2011-22 and Condominium Project Approval and Processing Guide
  • ML 2012-18 Temporary Approval Provisions for FHA Condominium Project Approval
  • ML 2015-27 Additional Temporary Approval Provisions for FHA Condominium Project Approval  
  • ML 2016-15 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

To identify the jurisdictional Homeownership Center for the state where the condominium project is located please visit  https://www.hud.gov/program_offices/housing/sfh/sfhhocs

HUD Policy Determination

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-03958