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9 Types of Condo Projects that Must be Reviewed by HUD/HRAP

Mortgage and Lending with ReadySetLoan Condo Team LLC

9 Types of Condo Projects that Must be Reviewed by HUD/HRAP

fha condo approvalWhile HUD allows lenders with Direct Endorsement authority to review and approve condominium projects on HUD’s behalf (DELRAP), there are 9 different circumstances where the condominium must be reviewed directly by HUD (HRAP).

  1. Condominiums in Florida.  Due to the issues in the condominium real estate market in Florida, all condominium project approvals must be reviewed by the Atlanta Homeownership Center.

  2. In Bankruptcy or Receivership.  The fact that the condominium project or the developer is in bankruptcy or receivership is not an automatic disqualification for project approval but it must be reviewed by HUD.

  3. Manufactured Housing Condominium Projects (MHCPs).  MHCPs are not considered Site Condo Projects and must be reviewed by HUD.

  4. Converted Non-Gut Rehabilitation Condominiums.  This includes project submissions that have been converted to a condominium regime within two years of the date of recordation of the Declaration.  Consult ML12-18 for the definition of “non-gut”.

  5. Mixed-use condominiums with commercial space exceeding 25% of the total floor area.  The standard guideline for commercial space in a condominium project is 25%.  However, HUD will allow up to 50% commercial floor area on an exception basis but it must be reviewed by HUD.

  6. Live-work condominium projects.  Condominiums containing live-work units must be reviewed by HUD.

  7. Condominiums with Rent-stabilized and Below-Market-Rent (BMR) units.  These must be reviewed by HUD.

  8. Condominiums containing Affordable Housing Units.  Condominiums with Affordable Housing Units may be eligible for project approval if they meet the requirements of 24CFR203.41 but must be reviewed by HUD.

  9. Condominiums that have been Rejected or Withdrawn in the previous 12 months.  If a condominium has been Rejected or Withdrawn either through HRAP or DELRAP, the project must be submitted to HUD for approval/reconsideration.


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The Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their approvals with FHA and the VA or become recertified with FHA.  We have assisted nearly 200 condominiums and we can help your association.


ReadySetLoan is an active member of the Connecticut and New England chapters of the Community Associations Institute (CAI) and is a frequent contributor to Common Interest Magazine as an expert in FHA/VA condominium project approvals.


Please contact us with any questions regarding FHA or VA condominium project approvals.  You can email me at askeric@readysetloan.com or call me at 404-433-4565. I will be happy to answer any of your questions.


FHA/VA Condo Approval Specialist

404-433-4565 Cell Phone

860-644-3772 Fax Phone

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 Check out our article in Common Interest magazine on page 19!

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Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Eric. Wow, that is some serious information, fortunately we know if is accurate as you shared it. There are so many new and "so called" improved regulations, it is mind boggling.

Oct 07, 2015 10:59 PM
ReadySetLoan Team

Thank you very much, Joe.  I had never thought about this before and when I began compiling the list, I was surprised at how many circumstances fell into this group.

Oct 08, 2015 04:44 AM
Mark Don McInnes, Sandpoint-Idaho
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

A lot of good information here Eric.  It is so difficult to keep up with everything.  Better knowing where to look.  I will start with book marking this post.  Thank you.  Mark

Oct 07, 2015 11:01 PM
ReadySetLoan Team

Thank you for reading and commenting, Mark.  Hit me with any questions that you might have about FHA condominium project approvals.

Oct 08, 2015 04:45 AM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Hi Eric Boucher Another good fact-filled post.

Everything I wanted to know (and even some I didn't).

Bill Roberts

Oct 08, 2015 12:36 AM
ReadySetLoan Team

Thank you for reading and commenting my friend.

Oct 08, 2015 04:45 AM


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