Key Points
-Not available to projects that are already FHA approved
-In order for the project to be considered for the lower owner-occupancy percentage, the project documents (including additional financial documents for the prior 3 years) must be resubmitted directly to FHA for approval
-The option available for review of the lower owner-occupancy percentage is for the HRAP method versus DELRAP
So what is HRAP and DELRAP?
“There are two ways to get a condo project approved. HRAP stands for HUD Review Approval Process. This is where the FHA approves a complex based on the package sent in by the condo’s governing body, usually the homeowner’s association or management company. It typically takes the longest time. The other type of approval is called DELRAP, or Direct Endorsed Lender Review Approval Process. This is when an FHA-approved lender reviews the condo documents and certifies that the condo project meets FHA standards.”
