Is your HOA struggling to attract new buyers? In today's market, roughly 60% of new homebuyers intend to use an FHA loan. If your existing community isn't HUD-approved, you are effectively cutting out over half of your potential buyer pool.
Getting FHA (HUD) approved might seem like a mountain of paperwork, but it's one of the most effective ways to boost property values and financial stability. Here is how your board can navigate the HUD Review and Approval Process (HRAP).
Why Does FHA Approval Matter?
Wider Buyer Pool
Opens the door to first-time buyers who only need a 3.5% down payment.
Higher Property Values
Increased demand from more buyers naturally drives up sales prices.
Reverse Mortgages
FHA approval is mandatory for residents wanting HECM (Home Equity Conversion Mortgages).
More Owner-Occupants
FHA loans require buyers to live in the unit, reducing transient renters.
Learn the Key Facts
HUD Knowledge Cards
60% of First-Time Buyers
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1Phase 1: The "Pre-Flight" Eligibility Check
Before you spend a dime on application fees, ensure your community meets these "must-have" HUD thresholds:
Owner Occupancy: 50%+
At least 50% of units must be owner-occupied.
Dues Delinquency: <15%
No more than 15% of units can be 60+ days behind on assessments.
Healthy Reserves: 10%+
Your annual budget must set aside at least 10% for replacement reserves.
Insurance Coverage
Adequate hazard, liability, and fidelity insurance (covering at least 3 months of assessments plus reserves).
Test Your Knowledge
HUD Eligibility Quiz
What is the minimum owner-occupancy rate required for FHA approval?
2Phase 2: Gathering the Paperwork
HUD requires a comprehensive digital "Project Package." You'll need:
Governing Documents
CC&Rs, Bylaws, and Articles of Incorporation
Financial Documents
Current year's budget, two years of year-end financial statements, and a recent balance sheet
Management Agreement
A copy of the current contract with your property management company
3Phase 3: The Submission Process
Pro Tip: You don't have to wait for a specific buyer to start this. In fact, it's better to be proactive to avoid losing a pending sale.
- 1
Complete the Forms
Authorized reps must fill out Form HUD-9992 (Project Questionnaire) and Form HUD-9991.
- 2
Submit Electronically
Email the full package to [email protected]. Subject line: "Condominium Project Approval Package, [Project Name]"
- 3
Wait for Review
Approval usually takes 30 to 90 days for complete packages.
Why Management Companies Choose HOACart
Our software platform provides everything you need including a full packet ready to go to your local HUD office. Ensure quality management—our software makes it easy so you don't burn endless hours trying to figure out what to do.
- Pre-filled HUD forms (9991 & 9992)
- Automated eligibility checking
- Document package assembly
- Compliance tracking dashboard
- Renewal reminders
Calculate Your Revenue Potential
Add value to your clients and convert more subscription services for your offices. HUD approval renewals every 36 months create a reliable recurring revenue stream.
HUD Approval Revenue Calculator
Calculate your potential revenue from offering HUD approval services
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What Our Partners Say
Success Stories
"Within 6 months of getting our communities HUD-approved, we saw a 40% increase in buyer interest. The HOACart platform made the paperwork process seamless."
Maria Rodriguez
VP of Operations
Sunrise Property Management • Phoenix, AZ
Ready to Get Started?
Get Started with HUD Approval Services
Ready to boost your community values? Let's talk about how we can help.
Emmett Clark
California Real Estate Broker #01408122
With over 20 years of experience in California real estate and property management, Emmett specializes in helping HOAs and management companies navigate complex compliance requirements. He is a regular contributor to industry publications and speaks at property management conferences nationwide.