The Federal Housing Administration (FHA) has published updated condominium policy guidelines and instructions that clarify the approval and recertification process and policies for condo projects. FHA’s mortgagee letter includes a Condominium Policy Guide and Implementation Schedule identifying timelines for lenders to comply with the guidelines.

FHA’s mortgage letter and guide:

Consolidates guidelines published in 2009;
Provides a single source of information for the Condominium Approval and Recertification Process;
Updates, consolidates and clarifies existing condominium policy guidance; and
Expands FHA’s flexibility to consider exceptions at the individual project level
Condominium project approval can be issued by FHA staff or by lenders who have delegated approval authority. In addition, FHA’s Homeownership Centers will have greater flexibility to make determinations to address individual circumstances on a one-by-one basis.

Another way to determine whether a project is eligible for FHA financing is with Clarus FHA Approval™ Eligibility Check. Offered by Real Estate Business Services, Clarus FHA Approval™ Eligibility Check allows users to check condo and townhome FHA eligibility in real time. For more information about Clarus FHA Approval™ Eligibility Check, please visit www.ClarusFHAapproval.com.