Summit House Condominium in PA is an FHA Approved Community.

Welcome to my blog, where I’ll highlight an important topic for condominium communities: the advantages of obtaining FHA Condo Approval. While the process may seem daunting, I aim to dispel common myths and misconceptions surrounding this certification and delve into the differences between the two popular approval methods: HRAP (HUD Review and Approval Process) and DELRAP (Direct Endorsement Lender Review and Approval Process).

People buy condominiums for various reasons drawn by the unique benefits and lifestyle they offer. Some key reasons are:

  • Convenience and low-maintenance aspects of condominium living. 
  • Condominiums often provide amenities such as swimming pools, fitness centers, and shared spaces, allowing residents to enjoy a comfortable lifestyle without the hassle of maintaining these facilities. 
  • Condominium communities often offer a sense of security and community, particularly appealing to individuals who desire a close-knit living environment. 
  • The ownership structure of a condominium allows for a more affordable entry into homeownership, making it an attractive option for first-time buyers or those looking for a more affordable housing option in desirable locations.

Here’s where the benefits of having a current FHA Condo Approval become evident:

FHA Condo Approval Dramatically Increases the Pool of Potential Buyers

  • Statistics show that approximately 60% of new home buyers intend to use an FHA Loan. Communities not approved by FHA limit the buying pool by 40%.

Increased Home Value

  • FHA Approved Condos have a larger pool of prospective buyers, increasing competition and demand for the product. Increased competition can result in higher purchase prices and increased market value, possibly increasing the value of units throughout the community.


  • Some real estate agents hesitate to show units that aren’t FHA approved. Being approved sets your community apart from others in your area.


  • Following through on the FHA Condo Approval process gives your Homeowners the sense that the board cares about the community and wants to see it thrive. Avoiding the approval process will hamper your owners when they sell their units or reverse their mortgages. What is a Reverse Mortgage?

Fewer renters in the community

  • Generally speaking, communities without FHA approval will attract buyers that can make large down payments. These buyers are usually investors who will rent the property for a profit. Buyers using FHA loans must reside in the unit for at least 12 months before they can rent it out.

Access to FHA Financing: 

  • FHA Approved Condo Communities allow potential buyers to qualify for FHA-insured loans, often offering favorable terms, such as lower down payments and more lenient credit requirements. Access expands the pool of eligible buyers, increasing the chances of selling units.

Now, let’s delve into the two main methods of FHA approval: HRAP and DELRAP. Understanding the differences between these approval processes can help you choose the one that suits your condominium community’s needs.

1. HUD Review and Approval Process (HRAP):

The Department of Housing and Urban Development (HUD) Review and Approval Process (HRAP) involves submitting condominium documents for review and evaluation to the local HUD office. This process ensures that the community meets specific criteria, including financial stability, appropriate insurance coverage, and legal and regulatory requirements compliance. HRAP allows HUD officials to review and provide feedback on the submitted materials, ensuring compliance with FHA guidelines.

2. Direct Endorsement Lender Review and Approval Process (DELRAP):

The Direct Endorsement Lender Review and Approval Process (DELRAP) streamlines the process by allowing lenders with FHA approval to review and approve condominium projects themselves. Under DELRAP, lenders ensure the project meets FHA guidelines and eligibility requirements. This method can expedite the approval process, eliminating the need for direct involvement from HUD officials.

Note: The DELRAP method is available to first-time submissions only. All recertifications must go through HRAP. If your community faces a rejection during a DELRAP submission, you can pursue an alternative option by resubmitting through the HRAP (HUD Review and Approval Process).

Common myths and misconceptions surrounding FHA approval that often deter condominium communities from pursuing this certification.

Obtaining FHA Condo Approval is a cumbersome and time-consuming process.

  • While it is true that obtaining FHA approval involves lots of paperwork and adherence to guidelines, and the process may seem challenging, the benefits that come with FHA approval can outweigh the initial effort. By familiarizing yourself with the process and seeking guidance from professionals experienced in FHA approval, you can navigate the certification process smoothly. 

FHA approval only benefits communities with lower-income residents.

  • FHA Condo Approval is entirely unrelated to affordable housing programs. According to Lending Tree, the FHA loan max, or “ceiling,” in high-cost areas is $1,089,300 — 150% of the conforming loan limit. The 2023 FHA loan limits for single-family homes increased 12.21% over the 2022 FHA loan limits of $420,680 for most areas and $970,800 in high-cost areas.

FHA Loans caused the mortgage crisis. 

  • FHA loans are not Sub Prime Loans. Although they offer lower down payments than traditional mortgages, credit score requirements, debt-to-income analysis, and income verification exist. According to Forbes, a Federal Housing Administration (FHA) loan is a ticket to homeownership for many people. In 2022, nearly 700,000 home loans originated through FHA. That represents about 14% of all home purchases and nearly 10% of refinances completed that year.

The guidelines are too strict and cost prohibitive.   

  • Well-managed and financially stable communities can quickly become FHA approved. The cost has dropped dramatically since 2010. Prices can start as low as 595.00, and some companies are willing to work within your community’s budget. Most companies will require a small (nonrefundable) deposit; however, you don’t pay the balance until they get your community FHA approved or recertified.
The Townhomes at Cider Knoll in PA is an FHA Approved community.

In conclusion,

Obtaining FHA approval for your condominium community can unlock many benefits, including increased marketability, access to FHA financing, reassurance for buyers, and improved resale potential. By dispelling common myths and understanding the differences between HRAP and DELRAP, you can decide on the path to FHA approval that aligns with your community’s goals.

In upcoming blogs, I will dig deeper into the FHA approval process, share success stories from FHA-approved communities, and provide guidance to help you successfully navigate the certification path. Please stay tuned for more valuable insights on harnessing the advantages of FHA approval for your condo community.

Marianne Holt, FKA, FHA Condo Reviewers, LLC is a Real Estate Consultant, and Condo Specialist. You may reach her by email at: or check out her website at

Share on social media.

Leave a Reply

Your email address will not be published. Required fields are marked *