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FHA Mortgage Lenders For Condos

FHA Condo Mortgage Lenders – Condo FHA Mortgage Lenders

FHA Mortgage Lenders approve condos on case by case bases. FHA condo mortgage lenders require the  condominium complex and meet all FHA mortgage lenders minimum requirements  including 51
occupancy, 15% delinquencies). All condos  and attached PUD’s require 100% ‘walls-in’ H06 coverage. Stick-built site condos do not require FHA HRAP/DELRAP approval. Manufactured condos must have FHA HRAP approval.

Where can I find the approval procedures for condominium projects?

FHA Condo Mortgage Lenders or FHA case numbers assigned on or after October 15, 2019, condominium project approval requirements and submission procedures can be located in: Handbook 4000.1, Section II.C.2 and II.C.3 available at:
For case numbers assigned prior to October 15, 2019, information is available in:

  • FHA mortgage lenders Mortgagee Letter (ML) 2011-22 Condominium Approval Process for Single Family Housing – Consolidation and Update of Approval Requirements and the attached Condominium Project Approval and Processing Guide provides the requirements and procedures for obtaining FHA condominium project approval.

  • ML 2012-18 Temporary Approval Provisions for FHA Condominium Project Approval provides temporary condominium project approval guideline changes to address current housing market conditions. 

  • ML 2015-27 Additional Temporary Approval Provisions for FHA mortgage lenders Condominium Project Approval. 

  • ML 2016-15 FHA Condominium Project Approval – Owner Occupancy Requirements modifies the FHA mortgage lenders Condominium Project Approval and Processing Guide, attachment to ML 2011-22, in order to implement the Housing Opportunity Through Modernization Act of 2016 (HOTMA) requirements and establish the required owner-occupancy percentage that must be met for purposes of FHA project approval.

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:

For more information regarding condominium projects refer to:

Can a Mortgagee make a loan in a condominium project that is not FHA approved?


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:

  • Expired

  • Rejected, including “Registered Single-Unit”

  • Withdrawn

Borrower Eligibility

The mortgage application receives an Accept from TOTAL Mortgage Scorecard or has a maximum Loan-to-Value (LTV) of 90 percent.

Property Eligibility

  • 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.)

Additional criteria for determining property eligibility may include:

  • 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

  • Litigation

For more information regarding the Single-Unit Approval Process, please refer to: Handbook 4000.1 II.A.8.p.iii available at:

For additional information see:


US Mortgage Lenders has an extensive lender network that allows us to provide unique and mortgage solutions. Contact US for the most update information on terms and conditions. All Information on this site Is for example, hypothetical purposes and should NOT be relied on for decision making.
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