- FHA will only allow single-unit approvals for up to 10% of the units in a project (or up to 2 units for projects of 10 units or less). Once this amount is filled, the condo will need to go through the full approval process before more FHA loans can be closed within it.
- If a condo already has at least 1 phase fully FHA approved, then units in any other phase are not eligible for single unit approval. They will need to submit to add additional phases to the current FHA approval.
- Single unit approval loans that require a manual underwrite are capped at 90% maximum LTV/CLTV (no LTV/CLTV cap for DU Approve/Eligible loans).
- Projects with less than 5 units are not eligible for single unit approval.
- The unit is approved must either have been previously occupied or the Certificate of Occupancy must have been issued for at least one year. Newly built condo units are not eligible for single unit approvals.
MORE INFO BELOW IN ARTICLE FROM YAHOO ABOUT NEW FHA FINANCING GUIDELINES