FHA is implementing new guidelines for buyer purchasing a brand new home or building a home and doing an FHA loan (loan amount less than $278K). An FHA requires a minimum of 3.5% downpayment but some can obviously put more money down to reduce their monthly mortgage payment. The main changes protect the buyer requiring more inspection and a longer home warranty of 10 years from the builder. While most builders generally provide that and some States already require it you know are mandated to have that by FHA.
Here's the various scenarios. If you have questions about new home construction please send me an email and I will gladly help you.
Requirements for Proposed, Under Construction and Existing < 1yr EFFECTIVE AS OF 02/2010
Proposed & MAR (approved prior to the beginning of construction by either a Conditional Commitment, Early Start Letter, or MAR form 91322 for High Ratio loan)
Building Permit (or equivalent) and C.O. (or equivalent) (except on manufactured home*)
1. Health Authority Approval if needed.
2. Flood insurance (elevation cert noted as SFHA)
** If early start letter is in file – treat as proposed
JP Piccininini is the BROKER/OWNER of JP and Associates REALTORS a real estate company based in Frisco Texas with a philosophy to always exceed its client's expectations. He is a perennial TOP Producer, and a Luxury Home Specialist. He specializes in residential home sales in Frisco, Plano, Allen and McKinney covering the North Dallas market. He can be reached at 469-999-HOME /469-999-4663 or via EMAIL at JP@JPHOMESFORSALE.COM
Author:JP Piccinini Phone: 800-683-5651 Dated: December 22nd 2011 Views: 10,867 About JP: JP Piccinini is an entrepreneur, philanthropist, proud dad and the Founder, Broker and Owner of JP a...