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Recent FHA Guidance on Condo Recertification

    Condominium projects must be certified by the Federal Housing Association (FHA) to be eligible for mortgages backed by the FHA. The FHA is the single largest mortgage insurer in the world; thus, the importance of FHA approval for condo projects cannot be overstated.

    Recently, the FHA released new guidance concerning the certification process. Getting a condo project approved is the first step, but maintaining certification is also very important. 
    FHA certification expires two years after the project has been approved. A condo project is eligible to seek recertification six months before the certification expires. If the project is not recertified six months after the expiration date, it must seek full certification. The determination of a project’s eligibility to complete the recertification process also depends on when the project received its initial approval.

Initial Approval Prior to January 1, 2000
Full certification is required

Initial Approval After January 1, 2000
    The project is eligible for the streamlined recertification process, which ensures the condo project maintains compliance with FHA standards. For recertification, the following documents are required:    

  • Cover letter
  • Financial documents (one of the following)
    • Budget
    • Reserve study
    • Fannie Mae Form 1037(a), Analysis of Annual Income and Expenses-Operating budge signed by an authorized individual
  • Management agreement (if applicable)
  • FEMA flood map
  • LOMA, LOMR or an Elevation Certificate (if applicable)
  • Evidence of required insurance coverage

For the full FHA recertification packet click here.

    This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.

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