Financing in Sunnyvale>Question Details

Noname, Other/Just Looking in Sunnyvale, CA

what does FHA approved complex means? Where can I find the guideliness?

Asked by Noname, Sunnyvale, CA Sat Jun 25, 2011

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Robert Lei’s answer
Hi Noname,
Here is the link to check whether a condo complex is FHA approved:

However, often you will get the following message:
Message: Your request could not be processed at this time. Please try again later.
Normal hours of operation are from 8 am to 10 pm Eastern time Monday through Friday. The time is now 11:56 PM

If that happens, then call your lender and have your lender check for you.
0 votes Thank Flag Link Sat Feb 9, 2013
There are two new FHA condo approval processes - DELRAP (Direct Endorsed Lender Review & Approval Process) and HRAP (HUD Review & Approval Process).

DELRAP is where the lender you are applying with will review & approve the condo homeowners association (HOA). When either process is done, the homeowners association is involved in providing a bit of the paperwork, and to do so they almost always want to get paid. It can cost from several hundred dollars to a couple thousand to get a condo FHA approved.

The first step usually involves getting a "condo questionnaire" which will ask a bunch of basic questions about the condo such as how many units are owner occupied, how much commercial space there is (if any), how many units are delinquent in their HOA dues, and if anyone owns more than 10% of the units, among other questions. The condo questionnaire usually costs about $100. It's better to do that first rather than request all of the documentation at first, because the condo questionnaire will immediately answer a lot of the FHA eligibility requirements, and the rest of the documents that are needed to approve a condo for FHA financing usually cost several hundred dollars more (there was a condo association out here in Los Angeles that wanted to charge over $3k for everything!). With the DELRAP method lenders need an accepted contract, and the process takes about 2-4 weeks, so the seller/listing agent/buyers agent/buyer will all need to be aware of the extra processing time. However in a buyer's market, you'd be surprised how many condo HOA's are willing to go through the FHA approval process at the recommendation of the unit owners.

The HRAP process is similar to the DELRAP process except for it is directly with the HUD Homeownership Center (HOC) that serves the state. Processing and knowing what to look for, who to ask, and how to explain the documents can be daunting... which is why a lot of HOA's choose to enlist the help of a lender or a 3rd party HRAP processing company such as has a pretty solid track record of assisting lenders with the DELRAP and assisting condo associations directly with the HRAP.… - page 16 has the full list of documents required for proposed, existing and apartment-to-condo conversions.... page 4 is the FHA eligibility checklist.

Ask your lender if they can assist you with the DELRAP or HRAP condo approval methods, if not, or if you don't like them anyway, then call me as we can.
0 votes Thank Flag Link Sat Jun 25, 2011
If you're looking to buy a condominium, the FHA doesn't just approve the condo, it has to approve the community too. For example, if 15 percent of the members are more than 30 days late paying their monthly dues, the FHA won't approve the condo association. That blocks you from getting an FHA-insured mortgage. The FHA also won't approve the association if more than 50 percent of units are rented out, rather than owner-occupied.

It's a good idea to check the status of the condo association's approval status with FHA.

Click here for more information :
1 vote Thank Flag Link Wed Jul 22, 2015
If I have been pre-approved for an FHA loan what exactly does that mean?
0 votes Thank Flag Link Mon Jan 21, 2013
Marcy - yes, that is correct, spot approvals no longer are being done and DELRAP & HRAP are the two new methods. FHA condo spot approvals were eliminated on new FHA case #'s from February 1, 2010 forward per the mortgagee letter:…
0 votes Thank Flag Link Sun Jun 26, 2011
Is the Delrap different from the spot approvals which i thought were no longer being done?

Web Reference:
0 votes Thank Flag Link Sun Jun 26, 2011
Hi Noname,

If you are interested in a particular Condo/Townhome complex and want to find out if it has FHA approval (since you are thinking of getting an FHA Loan), then ask your Lender/Mortgage Broker to look it up for you.....they have access to that data. My Lender just finished the process - HRAP (HUD Review & Approval Process). for a Listing i have in a Condo Complex here at Celeste Circle in Cupertino, CA.
Do get in touch with me and I can assist you further with this.
Shanes answer below is very well explained!
Be well and safe, regards,
Nina Daruwalla
COldwell Banker, Cupertino.
0 votes Thank Flag Link Sun Jun 26, 2011
Hello No Name;

Shane in the answer below has hit every answer with percision. Nice to see a Lender with the specifics on what the FHA approval process is. Hearing directly from a lender is right on. Good Answer Shane. Way to be on top of your game. Before even considering writing an offer your Realtor should be advising you on the process and if he is not call Shane or another qualified FHA lender.
Good Luck
0 votes Thank Flag Link Sat Jun 25, 2011
In order to get an FHA loan on a condo the complex must have have been approved by the FHA that approval can not have expired. FHA has requirements for owner occupancy, reserves, past due dues, etc. If the complex is not already FHA approved then they will not make a loan. A complex can ask for approval, but that is a lengthy process and will not work during a current escrow period. To check to see if a complex is approved go to :

Marcy Moyer
DRE 0119194
Web Reference:
0 votes Thank Flag Link Sat Jun 25, 2011
In order to finance with less than 20% down a condo will need to be FHA approved. Not all are. You and/or your agent can check the HUD website. Unfortunately it tends to be down evenings and weekends.

HUD wants to make sure that all their documentations are in order.
The complex is less than 50% Tenants
The HOA dues are less than 15% delinquent
There are no pending or active litigation.

I worked with a lender and we got a huge condo complex FHA approved - it's not easy. You need the cooperation of the HOA
Web Reference:
0 votes Thank Flag Link Sat Jun 25, 2011
The FHA financing is structured to help the home buyer. FHA has requirements for the condition of the home which is assessed at the time of the appraisal. This statement indicating the home will pass the FHA guidelines indicates the home is in favorable condition. For more information on FHA appraisals go to…

Carol Perdew
Prudential California Realty
(209) 239-7979
DRE 985176
0 votes Thank Flag Link Sat Jun 25, 2011
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