FHA New Construction Documentation Requirements

By
Mortgage and Lending with Angel Oak Home Loans NMLS #151088
https://activerain.com/droplet/5ff9

FHA New Construction Documentation Requirements

 

New Construction < 1 Year

If property is one year old, provide Certificate of Occupancy to determine if less than 1 year.

Option A - New construction (one year old or less), where the local jurisdiction issues building permits AND performs local inspections/issues Occupancy Certificates (see * below)

Option B - New Construction (one year old or less), where the local jurisdiction does not issue a building permit AND a Certificate of Occupancy

  • All of the following are required to satisfy the requirements for obtaining a high ratio loan >90%:
    • An Early Start Letter OR Proof of enrollment in a warranty plan acceptable to HUD. If an Early Start Letter is in the file, treat as proposed construction.
    • For Proposed Construction, the Initial, Framing and Final inspections by a Fee inspector unless a 10 Year Warranty is obtained.

 

 

Type of Construction

Proposed Construction

Under Construction

Existing, Less Than 1 Yr

 

Required Documents

     Option A

    Option B

     Option A

  Option B

  Option A

   Option B

Initial Inspection

 

        X

 

 

 

 

Framing Inspection

 

        X

 

 

 

 

Final Inspection

        X

        X

        X

       X

      X

       X

10 Yr Warranty

 

        X

 

       X

 

       X

Building Permit

        X*

 

        X*

 

      X*

 

Occupancy Certificate

        X*

 

        X*

 

      X*

 

*A letter from the local jurisdiction, explaining what their "equivalent" to a Building permit or Occupancy certificate, must be retained in the file along with a copy of the "equivalent"

The following construction documents also required:

  • Builder's Certification of Plans, Specification, & Site Form HUD-92541
  • Builder's Warranty Form HUD-92544
  • 10-Yr Warranty Plan (when required). If using a 10 yr warranty
  • Subterranean Termite Treatment Report NPCA 99a and NPCA 99b NOTE: 99b is not required if section 2 is completed on the 99a.
  • Local Health Authority well water analysis or septic report, where applicable
  • CIR for final inspection HUD-92051 (use if property is not 100% complete at the time of inspection.
  • Form HUD-92541 - N/A for condo's

 


Re-Sales < 1 Year

HUD/FHA will treat re-sales to a second or subsequent purchaser of new, less than one year old properties that are 100% complete including all on and offsite improvements as existing properties and the new construction exhibits normally submitted will not be required, provided that:

  • The re-sale is an Arms length transaction.
  • The lender shall clearly identify the transaction is a re-sale to a second or subsequent purchaser in the case binder to avoid an NOR issued by the Homeownership Center for missing new construction exhibits.
  • While a builder selling a newly built home is not subject to the property flipping rule, a subsequent seller would be.

 


Builder Foreclosures

 If the Builder was foreclosed on and the Seller is the foreclosing entity. The new construction documents are not required.

 


 

Posted by

 

It is always advisable to consult with a knowledgeable lending professional when navigating today's turbulent mortgage and real estate marketplace.  I am committed, qualified and equipped to help you evaluate your options!

 

Also check out:

Conventional Financing Mortgage Program Overview/Updates

FHA Financing Mortgage Program Overview/Updates

USDA Financing Mortgage Program Updates  

 

Programs Include:

 

  • Conventional (Fannie Mae & Freddie Mac)

  • FHA, USDA, & VA

  • Jumbo to $3,000,000

  • Bank Statement Program for Self-Employed Borrowers

  • Foreign National Program

  • Investor Cash Flow

  • Non-Warrantable Condos

  • Georgia Power Leaseholds for Lake Burton, Rabun, & Seed

 

  • ************************************************************************************************************
  • Rodney Mason is a Licensed Branch Manager located in Atlanta, GA.   He can be reached at (404) 591-2453.
  • Providing financing for all cities across Georgia including: Acworth, Albany, Alpharetta, Athens, Atlanta, Augusta, Austell, Avondale Estates, Blairsville, Bloomingdale, Blue Ridge, Bogart, Brunswick, Buckhead, Buford, Canton, Carrollton, Cartersville, Chatsworth, Clayton, College Park, Columbus, Commerce, Conyers, Covington, Cumming, Dahlonega,  Dacula, Dalton, Dawsonville, Decatur, Doraville, Douglasville, Duluth, Dunwoody, East Point, Fayetteville, Flowery Branch, Gainesville, Greensboro, Hampton,  Hapeville, Hinesville, Hiram, Jackson, Jefferson, Jonesboro, Kennesaw, Lagrange, Lawrenceville, Lilburn, Lithia Springs, Macon, Madison, Metter, Morganton, Morrow, Newnan, Norcross, Oakwood, Peachtree City, Pooler, Richmond Hill, Riverdale, Rome, Roswell, Sandy Springs, Savannah, Scottdale, Statesboro, Stockbridge, Stone Mountain, St Marys, Sugar Hill, Suwanee, Thomasville, Thunderbolt, Tucker, Tybee Island, Valdosta, Waleska, Warner Robins, Waycross, Wilmington Island, Winder, Woodstock, and many more.

    Providing financing for all cities across Alabama including:
    Alabama Port, Anniston, Athens, Auburn, Bessemer, Birmingham, Boaz, Bridgeport, Cedar Bluff, Chickasaw, Clayton, Coden, Dauphin Island, Decatur, Dothan, Eufaula, Fairfield, Fairhope, Florence, Foley, Forestdale, Fort Morgan, Fort Payne,Gasden, Grand Bay, Gulf Shores, Heron Bay, Homewood, Hoover, Jasper, Josephine, Madison, Meadowbrook, Midfield, Mobile, Mon Louis, New Hope, Orange Beach, Oxford, Oyster Bay, Phenix City, Prichard, Rainbow City, Saraland, Satsuma, Scottsboro, Selma, Troy, Theodore, Tillmans Corner, Trussville, Tuscaloosa, Vestavia Hills, Warrior and many more.

  • Providing financing for all cities across Florida including: Altamonte Springs, Atlantic Beach, Boca Raton, Bradenton, Cape Coral, Clearwater, Coral Springs, Daytona Beach, Delray Beach, Destin, Fort Lauderdale, Fort Myers, Fort Walton Beach, Gainesville, Hollywood, Homestead, Jacksonville, Jupiter, Key Largo, Key West, Lake City, Largo, Marathon, Mexico Beach, Miami, Naples, New Smyra Beach, Ocala, Orlando, Palm Coast, Panama City Beach, Pensacola, Pompano Beach, Port St Joe, Sanibel Island, Sanford, Sarasota, St Augustine, St Petersburg, Tallahassee, Tampa, Vero Beach, West Palm Beach, & Winter Park, and many more.

 

  • Providing financing for all cities across South Carolina including: Aiken, Anderson, Beaufort, Bluffton, Charleston, Columbia, Conway, Edisto Island, Florence, Greenville, Hilton Head, Johns Island, Myrtle Beach, North Augusta, Orangeburg, Rock, Hill, Spartanburg, Sullivans Island, Summerville, and many more.  
  •   

    Providing financing for all cities across Tennessee including: Athens, Brentwood, Bristol, Chattanooga, Clarksville, Cleveland, Cookeville, Dyersburg, Franklin, Gatlinburg, Greeneville, Johnson City, Kingsport, Knoxville, Maryville, Memphis, Morristown, Murfreesboro, Nashville, Newport, Oak Ridge, Pigeon Forge, Sevierville, and many more

 

All mortgage lending guidelines are accurate at time of post, but are subject to change without notice.  Please call for the most current information.

    

           

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Julie Chapman 11/02/2010 12:44 PM
Topic:
ActiveRain Community
Location:
Georgia
Groups:
Atlanta Real Estate Q&A
Georgia Association of REALTORS®
Alabama Realtors Innovation Station
Tags:
fha
new construction
georgia
alabama
builder
al
ga
requirement
mortgage

Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
409,951

Rodney Mason

AL, FL, GA, SC, & TN
Ask me a question
*
*
*
*
Spam prevention

Additional Information