The Quick Read: You cannot put the building on the list yourself. The condo association or its management company files the package, usually with a lender’s help. If the building is not approved, a second route called single-unit approval may cover your unit alone. Either way, the building has to clear one gate and you have to clear another.
Here is how that plays out when your goal is cash out of the condo you live in.
Does a Cash-Out Refinance Need an Approved Project?
Yes, in one form or another. FHA lends on a condo unit only if the building is approved or the unit gets approved on its own. The approval is about the building. Your credit, income, and equity are judged separately.
Many homeowners miss this. They qualify as borrowers, then find out the building is the problem. A strong file does not fix a weak project.
The cash-out rules sit on top of that. Across the wholesale programs Lendmire places FHA files with, the FHA cash-out reaches 80% LTV (loan-to-value, the loan as a share of the home’s appraised value). The home must be your principal residence. You must have owned and lived in it for 12 months before the case number is assigned. A case number is the file ID FHA issues for your loan. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Lendmire is a mortgage broker. It arranges loans through wholesale lenders, so every figure here is subject to lender guidelines and full file review. Nothing here is a commitment to lend. If you want the program basics first, start with the FHA cash-out refinance program page.
Who Actually Files the Paperwork?
Not you. HUD’s FHA Resource Center lists who can submit a project package. That list includes the lender, the builder or developer, the condo association, the management company, a project consultant, and an attorney acting for the association or developer. Applications from borrowers, homeowners, sellers, or realtors are not processed.
HUD itself reviews project approval requests, and the package is typically prepared and submitted by the parties named above. A consultant, an attorney, or the management company may handle preparing the package or filling out questionnaires, and the scope of that work is worth confirming with them up front.
So your job is to be the person who gets the right people moving. That means the board, the manager, and your loan officer.
Route One: Full Project Approval
Full approval puts the whole building on the approved list. HUD’s condo page describes both routes. FHA insures condo loans of up to 30 years to buy or refinance a unit in an approved project. It also does so in a project that is not approved but meets single-unit requirements.
Full approval has two review tracks. HUD’s handbook glossary defines both. One is HRAP, where HUD reviews the submission itself. The other is DELRAP, where a lender with the required authority does the review.
The submitter completes Form HUD-9992 and a document package. HUD’s required-documents list includes a signed and dated HUD-9992 and photographs of each building. If any unit has already closed, it also includes an HUD-9991.
Reviewers look at insurance coverage, financial condition, the nature of title, pending legal action, physical condition, and other factors that affect viability or marketability. Lawsuits against the HOA count. So do special assessments.
Some lenders will not accept DELRAP approvals, and some restrict single-unit approval. Those are lender rules, not FHA rules. It pays to ask which approvals your lender will take before the board spends money.
Route Two: Single-Unit Approval
Single-unit approval covers one unit in a building that is not on the list. HUD’s glossary defines it as approval of a unit in a condo project that is not an approved project.
The building must still meet a subset of the standards. HUD says the project needs at least five dwelling units. It must be complete and ready for occupancy, and it cannot be a manufactured home. A project with fewer than five units cannot use this route. It needs full approval, which is a heavy lift for a tiny association.
The lender completes Form HUD-9991. The HOA or management company fills in the project section. That form collects things like:
- the share of units already FHA-insured
- the owner-occupancy percentage
- how concentrated ownership is
- units behind on dues
- the reserve balance
- commercial space
- dues and special assessments
FHA Connection help says the lender submits the HUD-9991 when it requests the FHA case number. HUD reviews it. If approved, a new project record may be set up for the unit.
One point deserves care. Single-unit approval does not certify the building. It clears your unit for your loan. Do not tell a buyer later that your building is “FHA approved” because of it.
How Do the Routes Compare?
| Factor | Full approval (HRAP) | Full approval (DELRAP) | Single-unit approval |
|---|---|---|---|
| Who reviews | HUD | Authorized lender | HUD, via the lender’s file |
| Who starts it | HOA, manager, or lender | HOA, manager, or lender | Lender, with HOA input |
| What it covers | Whole building | Whole building | One unit |
| Best fit | Owners who want a lasting listing | Same, if the lender takes DELRAP | One-off refinance |
What Should You Check First?
Check the building’s status before anything else. HUD’s condo page links a public search by location, name, or status. FHA Connection has the same lookup for authorized users. A lookup can return approved, expired, rejected, or withdrawn.
| Status | What it means | Your next move |
|---|---|---|
| Approved | Building is on the list | Proceed under normal cash-out rules |
| Expired | Approval has lapsed | Ask the HOA about recertification |
| Rejected | Review failed | Find the cause; fix it; ask the lender about options |
| Withdrawn | Package was pulled | Ask why; resubmit or try single-unit |
| Not listed | Never submitted | Choose full approval or single-unit |
Approval is not permanent. HUD’s form instructions say a project can recertify no earlier than six months before and no later than six months after its approval expires. Approvals run about three years. An HOA that lets this slide can hurt every future FHA buyer and refinancer in the building.
A rejected or withdrawn history needs a closer look. Some lenders will not use single-unit approval on a project with that history.
Step by Step: From Pre-Screen to Closing
1. Confirm you qualify as an owner. You need 12 months of ownership and occupancy before the case number. An heir may have an exception to the 12-month rule, but it is lost if the heir rents the home out.
2. Look up the building. Use the HUD search and note the status.
3. Choose the route. Approved means move on. Expired means recertify. Unlisted means single-unit or full approval.
4. Get the HOA involved early. The board or manager supplies the project documents. Ask for the budget, the insurance, and any litigation or assessment details up front.
5. Let the lender submit. For single-unit approval, the lender files the HUD-9991 with the case number request. For full approval, the HOA or its consultant files the HUD-9992 package.
6. Appraisal and underwriting. The FHA appraisal sets the value, and the value drives the cash-out amount. Your file is then underwritten on its own.
7. Close. The project or unit approval must be in place before the loan is endorsed. A defect found late can strand a refinance.
A streamline refinance is the exception. FHA Connection help says an FHA-to-FHA streamline does not need the HUD-9991 questionnaire. A cash-out is a different transaction. Do not assume that relief applies to you.
Who Supplies What?
| Item | Usually supplied by | Why it matters |
|---|---|---|
| Form HUD-9991 | Lender and HOA together | Core single-unit questionnaire |
| Form HUD-9992 and photos | Submitter (HOA, manager, consultant) | Core full-approval package |
| Recorded legal documents | HOA or manager | Shows title and rules |
| Current board-approved budget | HOA or manager | Shows funding of reserves |
| Insurance evidence | HOA or its agent | Reviewed for adequate coverage |
| Appraisal | Lender orders it | Sets value for the cash-out |
What Do Reviewers Care About?
Think of it as a health check for the building. Owners can do a rough version before anyone files.
- Owner-occupancy. A majority of units should be owner-occupied, with limited flexibility. A building full of rentals struggles.
- FHA concentration. Too many FHA loans in one building is a flag. The exact cap has changed over time, so get the current figure from your lender.
- Commercial space. Ground-floor shops are fine up to a limit.
- Reserves and budget. The association needs real reserve funding, not a thin budget.
- Delinquent dues. Many units behind on dues signal trouble.
- Litigation and special assessments. Both are named review factors. Financial-distress events must be resolved and documented.
- Insurance and condition. Coverage must be adequate, and the property must be in sound shape.
An honest self-audit before the board spends money is cheap. Most failed projects fail on one or two of these items.
A Walk-Through: Owner, Unlisted Building
Picture a homeowner who has lived in her condo for several years. She wants cash out at up to 80% LTV. She looks up the building and finds it was never submitted. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Her loan officer checks which approvals the lender accepts. The building has more than five units and is complete. The HOA budget and reserves look healthy, with no lawsuits. So single-unit approval is a reasonable path, and it only needs this one file.
Now change the facts. Suppose the HOA is in a lawsuit and behind on funding reserves. Single-unit approval looks shaky. The board would have to fix those problems before any route works. This is a genuine toss-up for many owners. A fix may take longer than a cash-out is worth, so a conventional cash-out may be the stronger play.
What Happens to Your Borrower File?
Project approval and borrower approval are two separate gates. On your side, across the wholesale programs Lendmire places FHA files with, the typical envelope looks like this:
- A decision score of 580 or higher.
- Debt ratios (housing and total, as a share of income) that start at 31/43. Documented compensating factors can stretch them to 40/50 at the top tier. The automated finding governs most files.
- County loan limits apply.
- An upfront mortgage insurance premium of 1.75% of the base loan, which can be financed.
- An annual premium between 0.15% and 0.75% of the balance, depending on term, loan amount, and LTV.
On a 30-year loan at or below 90% LTV, the annual premium ends after eleven years. A cash-out capped at 80% falls in that band. Above 90%, it lasts the whole term. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
HOA dues and special assessments count in your housing payment too. So the budget matters twice, once to the reviewer and once to your ratios.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
If the Review Fails or the Approval Lapses
Do not stop at the first no. Find the specific cause. Common fixes include:
- paying down delinquent dues
- resolving a pending assessment or legal matter
- fixing an insurance gap
- reworking an underfunded budget
Once the issue is fixed and documented, the project can be resubmitted or recertified.
If fixes will take too long, ask about options outside FHA. A conventional cash-out has its own condo rules.
Key Terms Defined
FHA-approved condo project: A building FHA has reviewed and listed as eligible for FHA-insured loans on its units.
Single-unit approval (SUA): FHA’s approval of one unit in a building that is not on the approved list.
HRAP: The review track where HUD itself reviews a project submission.
DELRAP: The review track where a lender with the required authority reviews the submission.
HUD-9991 and HUD-9992: The forms used for single-unit approval and full project approval.
Recertification: Renewing a project’s approval before or shortly after it expires.
Case number: The ID FHA assigns a loan; for cash-out, the 12 months of ownership and occupancy are counted back from it.
Frequently Asked Questions
Can I apply to HUD to put my building on the list?
No. HUD returns applications from borrowers, homeowners, sellers, and realtors. The association, its manager, a consultant, an attorney, or a lender must submit. Your role is to push the process along and supply what they ask for.
Does HUD charge a fee to approve a condo project?
No. HUD does not charge a fee for reviewing a project approval request. Separate costs can still come up, because consultants or attorneys may charge for preparing the package, and the HOA or its manager may charge for completing questionnaires. Those costs vary by provider.
Can single-unit approval work for a cash-out instead of a purchase?
HUD’s condo page covers loans to purchase or refinance a unit in a project that meets single-unit requirements. Some lenders add rules of their own. Have a loan officer confirm this before you pay for an appraisal.
How long does a project approval last?
About three years. It can be recertified starting six months before expiration and up to six months after. If the HOA lets it lapse, future FHA buyers and refinancers in the building can be affected.
Does an FHA streamline get the same relief as a cash-out?
No. A cash-out is a different transaction, so do not assume the same relief applies.
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending partners, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For the program’s current guidelines, see FHA loan programs.
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References
1. HUD FHA Resource Center – How do I submit a condominium project to HUD for approval
3. HUD FHA Connection – Condominiums Help
4. HUD – Form HUD-9992 Instructions
This article is part of Lendmire’s FHA Loan series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: FHA and Conventional Cash-Out Requirements for a Condo Primary Home · Can a Condo Owner Get an FHA Cash-Out Without Project Approval? · How a Low Appraisal Cuts Cash on an FHA Condo Cash-Out
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.