Part One of Multi-Part Series: Documentation Requirements for FHA New Construction Properties

Written By: Stacey Sprain

Definition: Existing Construction < 1 year old from Certificate of Occupancy Issue Date
These properties are 100% complete at the time of appraisal. "Complete" means everything is complete including the installation of buyer preferences (flooring, appliances, etc.), utilities are on and fully functioning and all site improvements completed at the time of appraisal (Ready for Occupancy). If no repair or correction conditions are made by the appraiser, the appraisal serves as the final inspection.

Documentation and Inspection Requirements: LTV >90% LTV-High Ratio Loan

1. NPMA-99a & NPMA-99b Subterranean Termite Treatment Report 
Note: These pest-related reports are required ONLY IF property is located in a HUD-designated Termite Tip Zone as listed at http://www.hud.gov/offices/hsg/sfh/ref/sfh1-23a.cfm.
and

2. HUD-92541 Builders Certification of Plans, Specifications and Sitecompleted and signed by builder or builder's agent
and

3. HUD-92544 Warranty of Completion of Construction completed and signed by builder or builder's agent and purchasing borrowers
and

4. HUD-Approved 10 year Warranty Plan per listing athttp://www.hud.gov/offices/hsg/sfh/ins/hoctenyr.pdf or Building Permit (or local jurisdiction equivalent) and Certificate of Occupancy (or local jurisdiction equivalent)**not permitted for manufactured homes
and

5. Health Authority Approval for private well and septic
and

6. Evidence of Flood insurance (if flood cert or elevation cert noted as SFHA).

Documentation and Inspection Requirements: LTV <=90%- Low Ratio Loan

1. NPMA-99a & NPMA-99b Subterranean Termite Treatment Report
Note: These pest-related reports are required ONLY IF property is located in a HUD-designated Termite Tip Zone as
listed at http://www.hud.gov/offices/hsg/sfh/ref/sfh1-23a.cfm

and

2. HUD-92541 Builders Certification of Plans, Specifications and Site completed and signed by builder or builder's agent
and

3. Health Authority Approval on private well & septic
and

4. Evidence of Flood insurance (if flood cert or elevation cert noted as SFHA).


About The Author

Stacey Sprain - As an NAMP® staff writer, Ms. Stacey Sprain is currently a NAMP® member in good standing, and is a NAMP® Certified Ambassador Loan Processor (NAMP®-CALP). With over 15+ years of mortgage banking experience, Stacey is also a Quality Control Manager for a major mortgage lending institution. If you would like to become a volunteer writer for us, please email us at: contact@mortgageprocessor.org.


Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.