How to submit a Condo Project for FHA Approval

Condo guidelines feel like they're ever changing and pursuing approvals can be an arduous task to undertake, which is why frankly most agents won't do it. Frankly, majority of lenders won't do it either. In my experience, most lenders argue that it's an HOA responsibility and not something they are going to use manpower for, understandably.

I'd almost argue, if a complex doesn't have anything that immediately and obviously disqualifies it, most people should be undertaking the task during the pre-listing stage as it can take anywhere from 5 days to 30 days to get approval depending on the workload of your regional center you need to submit to.

First up, required documents which will need to come from the HOA/Management company. Moving forward I'm going to use HOA to mean either HOA or management company. The documents below are pulled directly from the FHA handbook HERE. In the handbook you will find in depth explanations and potential exceptions to the list below:

REQUIRED DOCUMENTS

Form HUD-9992	Questionnaire to be completed by HOA in its entirety. Form HERE
Recorded Documents	Grab anything and everything you can from the HOA: - CC&R's - Declaration and/or master deed, and all amendments - signed and adopted bylaws - articles of incorporation - articles of association - declaration of trust - any other governing documents if applicable
Financials	current year’s budget approved by the Condominium Association board; year-to-date income and expense statement dated within 90 Days if the prior year-to-date actuals are more than 90 Days old; income and expense statement(s) for the previous two years actual year end results; current balance sheet dated within 90 Days prior to the date of submission;
INSURANCE Lliability & Fidelity	certificate of insurance or a complete copy of the insurance policy; and certificate of insurance or a complete copy of the insurance policy from the Condominium Association and/or from the management company.
Flood Map & insurance if applicable	FEMA flood map with the Condominium Project location clearly marked if applicable, the Letter of Map Amendment (LOMA), Letter of Map Revision (LOMR), or FEMA NFIP Elevation Certificate (FEMA Form 086-0-33); and if applicable, the certificate of insurance or a complete copy of the Flood Insurance policy.
For any other unique characteristics, visit the handbook	Handbook 4000.1 - II →C→2→a through f

Submission Process

Put documents into proper stacking order and a single PDF

1. Cover Letter

2. Form HUD 9992

3. Legal documents

4. Financial Documents

5. Contracts

6. insurances

7. Flood Insurance and related documents

8. Special Flood hazard area

9. Commercial nonresidential items

10. live/work documents (if appliable)

11. Other required documents if needed

After documents are gathered, identify your regional centers: HERE

Email the package to: answers@hud.gov

Subject line to include name of the project.

Emails and attachments no larger than 25mb. Can be sent in multiple emails if needed.

ELIGIBLE SUBMISSION SOURCE NOTES:

• Mortgagee

• builder

• developer

• condo association

• management company

• project consultant

• attorney for any of the aforementioned

ONly the following persons are permitted to submit the pacakge to the FHA. If you have questions, about this last requirement, let me know.