FHA Condo Approval Process in 2022

The Basics of FHA Condo Approval

If you are looking to use an FHA Loan, or obtain a Reverse Mortgage within a condominium association, the entire complex will need to be FHA approved.

By now, you have probably already determined that your condo (or condo of interest) is not FHA approved, so here are the basics about the FHA approval process.

The FHA Approval process takes about 2-4 weeks

The cost for FHA Approval is $795 – $895

The approval is good for 3 years

The Condo Management Company will need to provide some documents

Not ALL condominium complexes will qualify for FHA Approval.

How long does FHA Approval take?

The process of getting FHA Condo Approval generally takes between 2-4 Weeks.  Processing time will depend on:

  • How quickly we receive the Condo Documents from the Management Company
  • How eligible the community is, and what is needed to make them eligible
  • The caseload at FHA at any given time (maximum 30 days).

It is possible for us to rush the application process through our office, however, there is no way to expedite a file through the FHA.

How much does FHA Condo Approval cost?

The cost of FHA Approval depends on their current status with the FHA:

  • Condo that has never been approved – $895
  • One that has been expired over 6 months – $895
  • One that is not expired, but is up for renewal soon – $795
  • A condo that is expired, but for less than 6 months – 795
  • Brand new construction less than 1-year-old – $1,650

How long is FHA Condo Approval good for?

The FHA certification will be good for 3 years.  During this time, anyone within the community can utilize the following:

  • FHA Insured Loan
  • Refinance with an FHA Insured Loan
  • Reverse Mortgage or HECM Loan

What will I need to get from the condo to start the process?

To get started we will need a few things directly from the Condo Association.  This will include:

  • Step 1 Questionnaire
  • Some Documents related to the condo

For the Step 1 Questionnaire, please complete our Get Started Form so we may provide you some information related to your specific condo.

Will the Condo Community qualify?

We won’t know if a Condo qualifies for FHA approval until we review the documents, and bounce them off the guidelines.

We can advise you of the most common problems we face.  Here are the “Show-stopper” issues we see:

  • The condo MUST allow leasing in the community or they will not be eligible
  • The condo CANNOT have a Seasoning Clause in place
    • When a unit must be owner-occupied for 1 year before it can be leased
  • Must fund a reserve/savings account, funded by at least 10% of their budget
  • Board cannot have the power to approve of deny leasing, except to maintain a leasing cap

Not ALL communities will qualify for FHA Condo Approval.  Most issues we encounter can be fixed, but some cannot.

The 3-Step FHA Condo Approval Process in 2022

The FHA Condo Approval process has gotten a bad reputation for being a long, difficult, and expensive process.  However, the truth is, the FHA Condo Approval process isn’t that bad. Here is the process broken down:

FHA Condo Approval Process Basics in 2022

Here is a quick bulleted list of the 2022 FHA Condo Approval Process using FHA Review:

The Management Company or Condo Board will provide us with a completed questionnaire and some HOA documents.

We’ll review this information and make sure it meets FHA Condo Approval Guidelines.

If we uncover eligibility issues, we’ll work with the Property Manager to fix them.  This can add time to the FHA Condo Approval Process depending on the issue.

If it all looks good, we’ll submit to the FHA for a flat fee ($795 – $895)

The FHA takes about 3-4 weeks to issue the FHA Condo Approval.


FHA Approval


Property Manager or Board Member will complete our Eligibility Questionnaire.  Our processing team will review the file and see if it meets FHA Condo Approval Guidelines.


Identify and Correct Eligibility Issues

If we find zero eligibility issues, we’ll move on to Step 3.

If we discover things in our review that conflict with the FHA Condo Approval Guidelines, we will recommend a course of action to bring the community up to FHA Eligibility Standards.  It will be up to the Property Manager or Board to fix these issues.



After the eligibility criteria are met, we will build and submit your application to the FHA for Condo Approval.  The FHA generally responds to us within 2-3 weeks; however, it may take up to 30 days.

At this point, the FHA Condo Approval process is complete.  Once your community is FHA Condo Approved, you will be notified and emailed a certificate.

Additional Notes about the FHA Approval Process

At FHA Review, we offer a “Don’t Pass, Don’t Pay” guarantee to associations who meet 100% of the eligibility requirements.

Records for FHA Condo Approval Process

Per our contract, we will obtain your community’s:

  • Recorded Amendments
  • Condo Plans
  • FEMA Maps
  • Plat Maps

Other companies may expect you to find these documents, or charge extra. The only documents we request from you, the Management Company or the Board of Directors are documents that are not publicly available.

Timeframe for FHA Condo Approval Process
  • The FHA Condo Approval process can seem lengthy (30-45 days).  We prevent delays by identifying potential eligibility issues before submitting the application.
  • Our goal is to find these issues ahead of time and fix them before submitting anything to the FHA.
  • We’ve seen FHA condo approvals take over 6 months simply because the submitter left out vital information, or submitted incorrectly.  This can lead to un-funded loans and lost real estate transactions.