Mortgage U is your source for all things FHA and now with Condo Solutions that includes FHA condo approvals.

Overview

HUD recently announced a major overhaul to their condominium requirements and their condominium approval process. The “spot loan” option will be eliminated on February 1, 2010. There will be only two options for approving condominium projects for FHA financing. The HRAP- HUD direct review and approval and DELRAP-Lender review and approval processes each offer their own benefits and risks.

FHA Condo Approval Programs

Condo Solutions can help you sort through the maze of FHA condominium approvals. We have two FHA Condo approval consulting models to serve your needs.

FULL Service Option

Under the Full service option you may choose the amount of representation we provide. Services such as:

• Conferring with the Condominium Association or builder/developer directly
• Providing guidance on the paper work needed
• Assisting with the gathering of the paperwork
• Reviewing the documentation for submission to HUD
• Packaging the documentation form submission to HUD
• Submitting the documentation to HUD
• Communicating with HUD during the approval process
• Maintaining the documentation for the HUD required period of time.

This option is recommended for Lenders who:

• Deal with a minimal number of condominium projects
• Do not have the employees to dedicate to this process

Self Serve Option

With the Self Serve option we will:

• Train your staff on how to approve an FHA condominium project using the DELRAP process.
• Educate your staff on the documentation required
• Educate your staff on how to review it and what to look for
• Consult with your staff on their first five reviews

This option is recommended for Lenders who:

• Deal with condominium projects regularly
• Have a staff dedicated to the review of condominium projects