Home Lenders FAQs - Lenders What are the new construction documentation requirements for lenders on FHA new construction loans ?
What are the new construction documentation requirements for lenders on FHA new construction loans ?

FHA has revised the list of architectural exhibits needed for single-family properties one year old or less excluding manufactured homes and condominiums, which have separate requirements. Per Mortgagee Letter 2006-33, lenders are not required to obtain, retain or submit to FHA construction plans and specifications, including:

  • Plot Plan Floor Plan Exterior
  • Elevations, Sections and Details Specifications,
  • form HUD-92005 (Description of Materials)

FHA does require the submission and retention of the following documents for compliance review purposes:

  • Builder’s Certification of Plans, Specifications and Site, form HUD-92541
  • Builder’s Warranty, form HUD-92544 (on high ratio loans that are greater than 90%).
  • Building Permit and Certificate of Occupancy or 3 Compliance Inspections by an FHA Inspector (Footing, Framing and Final) or 10-Year Warranty and a Final Inspection by an FHA Inspector (refer to ML 01-27)
  • Wood Infestation Report, NPCA 99a and 99b
  • Local Health Authority well water analysis or septic report, where applicable 

NOTE: If a property is 100% complete (existing construction less than one year old), the lender must obtain and retain the following documents:

  • Builder’s Certification of Plans, Specifications and Site, form HUD-92541
  •  Builder’s Warranty, form HUD-92544 (on high ratio loans only)
  • Wood Infestation Report, NPCA 99a and 99b
  • Local Health Authority well water analysis or septic report, where applicable.
 

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