Home Lenders FAQs - Lenders Can an individual condominium unit be FHA insured financed in a Non-FHA approved project ?
Can an individual condominium unit be FHA insured financed in a Non-FHA approved project ?

June 2009: The Condominium Project Approval Process has been changed by government agencies. Please contact Nexus Analytix™ at, Phone: (856) 985-0008 or e-mail to learn more about the changes until this website can be updated.

FHA/HUD Condo Spot ApprovalYes - subject to certain conditions established by HUD. A final rule by HUD has been established a "spot loan" procedure to provide home mortgage insurance on individual units in a condominium project that have not been previously approved for financing. Here are a few of the more significant requirements:

  • At least 90% of the units in the project must have been sold.
  • At least 51% of the units in the project must be owner occupied.
  • No single entity may own more than 10% of the units in a project of 30 units or more.
  • No single entity may own more than 20% of the units in a project of less than 30 units.
  • All units, common elements, and facilities, including those that are part of any master association, must have been completed.
  • The project cannot be subject to additional phasing or annexation.

There are limitations of conversion units from apartment to condominium units and number of FHA / HUD mortgaged permitted in the project.

Nexus Analytix™ can provide consulting services to coordinate compliance with the needed documentation to determine eligibility. Feel free to contact our offices at, Phone: (856) 985-0008 or by e-mail.

 

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