Do Planned Unit Developments need to be pre-approved?

FHA does not require approval of a Planned Unit Development (PUD) as a precondition for placing FHA mortgage insurance on a dwelling located in the development.   

A Planned Unit Development (PUD) refers to a residential development that contains, within the overall boundary of the subdivision, common areas and facilities owned by a Homeowners’ Association (HOA), to which all homeowners must belong and to which they must pay lien-supported assessments. A unit in a PUD consists of the fee title to the real estate represented by the land and the improvements thereon plus the benefits arising from ownership of an interest in the HOA.  An Appraiser must contact the Mortgagee if the Property is located in a PUD that does not meet this definition. 

For additional information see Handbook 4000.1 II.D.3.c.i(C)  at


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-04293