Announcement 2019-086: FHA Single Unit Approval

Effective for new case numbers assigned on or after October 15, 2019, a Single Unit Approval may be eligible for a unit in a condominium project that is not currently a HUD approved project.

Single unit approval

Effective immediately, the Project Review Department (PRD) will begin accepting requests to pre-review projects for the program in advance of the October 15 date.


Expected SLA for this type of project review will be three (3) business days. The NewRez Project Review Department Policy and Project Review Submission Checklist will be updated on October 15, 2019 to reflect this process as an eligible project review type.



  • Must have TOTAL Accept score to get maximum loan-to-value (LTV) financing; if manual underwrite then LTV is limited to 90%
  • Project must be established, and must have five (5) or more units
  • Max Single Unit Approvals in a project is limited to 10% or 2 units for projects consisting of 10 units or less. This is tracked by FHA Connection.
  • Project must have least 50% primary occupancy
  • Budget will require a minimum of 10% reserve accounts
  • A current balance sheet is required
  • Fidelity will be required for projects consisting of more than 20 units in an amount no less than 3 months HOA dues plus the balance of the reserve account. The property manager must be either covered as additional insured on the HOA's policy or provide evidence of their own coverage
  • No more than 15% of the units can be 60 days delinquent
  • Max single entity is 10% for projects consisting of 20 or more units, a single entity cannot own more than 1 unit for projects with less than 20 units
  • Co-insurance is only allowed in Coastal Barrier Resources System
  • Commercial space cannot exceed 35% of the total square footage
  • Leaseholds are ineligible, an exception may be considered if an attorney opinion is provided stating the lease complies with FHA Lease guidelines
  • Litigation regarding safety, structural soundness, habitability or functional use is not eligible
  • The following are Ineligible project characteristics - Cooperatives, Condotels, projects with mandatory rental pooling agreements, timeshares or segmented ownership, multi-dwelling


Note: The following documentation will be updated or added to the Project Review page of the Client Library effective October 15, 2019:

  • Updated:
    • Project Review Submission Checklist
    • Project Review Department Policy & Procedures
  • Added:
    • Form HUD-9991
    • HUD-FHA SUA Job Aid