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DELRAP and HRAP approval for FHA buyers of condominiums and townhomes

By
Real Estate Agent with Bressi Realty Carlsbad CalBRE 01318292

With the FHA spot approval going away earlier this year, we're left with getting a DELRAP or HRAP approval for some condominiums and townhomes. Now I am not a loan officer, but I do have to figure out how to get an FHA buyer's offer accepted in a non-FHA approved community and try to convince the listing agent to stick with us through the process.

Assuming there were some FHA buyers in the community in 2009 or early 2010, there is a good chance it could be approved again so I would expect escrow to take an extra 3 weeks for a DELRAP approval. I think HRAP is also possible in this time, but I have heard if your initial application is incomplete, it will really slow things down having to resubmit.

If you have recently completed a DELRAP or HRAP approval, how long did it take, and which lender did you use(if it was DELRAP)?

HRAP = HUD Review and Approval Process

DELRAP = Direct Endorsement Lender Review and Approval Process

More information available at http://www.hud.gov 
A specific Mortgagee Letter found at
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-46bml.pdf

 HUD logo

Anonymous
Jerry

it is ridiculous that all condo units have to go through this process. this process was done when condo were first built, there is no need to go through this again. The only reason I can see is that government FHA want to collect more revenue. Why don't they just ask for money to get the approval ("insurance policy").

Jun 27, 2015 11:04 AM
#1
Anonymous
Michael McShane

The process is pretty slow as it is. We had started to look into a refi and discovered we could only qualify for an fha refi. Of course our condo's fha cert had expired. So we asked the hoa to recert in March and here it is the beginning of September and it was just approved as DELRAP. As I see it, it was mostly inept hoa and capca personnel that missed documents needed for the process.

Sep 02, 2019 08:21 AM
#2