The Federal Housing Administration (FHA) classifies condominium projects into five types, each with its own set of submission and approval requirements. Understanding these different project types is important for determining the eligibility for FHA condo approval.
Understanding the different types of FHA condo projects is crucial because the type of project can impact the approval requirements. Developers who are aware of the different project types can ensure they meet the appropriate requirements and avoid unnecessary delays in the approval process. At American Condo Approvals, we can guide developers through the complex FHA approval process, including helping them understand the required documents and submission requirements, even if they are unsure of what is needed. By working with us, developers can have peace of mind knowing they are on the right track towards FHA condo approval.
This type of project is a new development where no construction has been started. Developers who are planning a new condo project should be aware of the FHA submission and approval requirements for proposed projects.
Read more about criteria here and eligible projects below
This type of project is a new development where construction has already been started but not completed. Developers who are currently working on a condo project should be aware of the FHA submission and approval requirements for under construction projects.
This type of project is a fully completed development that had its final certificate of occupancy issued over one year prior to the application date. For legally phased (not marketing phased) projects, the initial phase must have been completed over one year prior to be considered an existing project. Developers who are working on a project that has been completed for over a year should be aware of the FHA submission and approval requirements for existing projects.
Read more about criteria here and eligible projects below
This type of project is less than 2 years old and changed its property title from one title to multiple titles (e.g. one apartment turned into multiple condos). The date of conversion is the date the condo declaration was filed in the public records. Non-gut conversions generally do not have any structural changes made, but do make cosmetic changes. These projects have more extensive approval requirements compared to other project types.
This type of project is less than 2 years old and changed its property title from one title to multiple titles (e.g. one apartment turned into multiple condos). The date of conversion is the date the condo declaration was filed in the public records. Gut-rehab conversions generally renovate the property down to the shell of the structure and make structural, mechanical, electrical and plumbing changes. These projects have more extensive approval requirements compared to other project types.
This type of project is not actually a “type” or phase of construction, but rather smaller projects with 2 to 4 units. These projects have lower requirements than normal projects, but must still abide by the conversion rules if they are a conversion.
At American Condo Approvals, our expertise and experience can help guide you through the complex FHA approval process, regardless of which condo type you have. Contact us today to learn more about how we can help you get your condo project approved with FHA, VA, and FNMA.
