FHA Guidelines for New Homes

FHA Guidelines for New Homes

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)

 

Low Ratio loan: 90% and lower

1. Subterranean Termite Treatment Report – NPCA-99a & 99b Or NPMA-99a

& 99b (Termite State)

2. Builders Certification (HUD 92541) (not for endorsement binder)

3. Final inspection by fee inspector (HUD 92051)

Or Building Permit (or equivalent) and C.O. (or equivalent) (except on manufactured home*).

4. Health Authority Approval on Well & Septic if needed.

5. Flood insurance (elevation cert noted as SFHA)

 

High Ratio loan: 90.01% and higher

1. 1. Subterranean Termite Treatment Report – NPCA-99a & 99b Or NPMA-99a & 99b (Termite State)

2. Builders Cert. (HUD 92541)

3 1-year warranty (HUD 92544)

4. 10 year warranty and final inspection by fee inspector (92051)

Or

******3 inspections by fee inspector (HUD 92051)

Or

******Early Start letter and 3 inspections by fee inspector (92051)

Or

Building Permit (or equivalent) and C.O. (or equivalent) (except on manufactured home*).

5. Health Authority Approval if needed.

6. Flood insurance (elevation cert noted as SFHA)

******Only 2 inspections are required on a Modular home (like manufactured housing*).

 

Under Construction:

Low Ratio loan: 90% and lower

1. Subterranean Termite Treatment Report – NPCA-99a & 99b Or NPMA-99a

& 99b (Termite State)

2. Builders Certification (HUD-92541) (not for endorsement binder)

3. Final inspection by fee inspector (92051)

Or Building Permit (or equivalent) and C.O. (or equivalent) (except on manufactured home*).

4. Health Authority Approval if needed.

5. Flood insurance (elevation cert noted as SFHA)

 

High Ratio loan: 90.01% and higher

1. 1. Subterranean Termite Treatment Report – NPCA-99a & 99b Or NPMA-99a & 99b (Termite State)

2. Builders Cert. (HUD 92541)

3. 1-year warranty (HUD 92544)

4. 10-year warranty & Final inspection by fee inspector (92051)

Or

Building Permit (or equivalent) and C.O. (or equivalent) (except on manufactured home*)

5. Health Authority Approval if needed.

6. Flood insurance (elevation cert noted as SFHA)

**If early start letter is in file – treat as proposed

 

Existing (New) < 1 year

Low Ratio loan: 90% and lower

1. Subterranean Termite Treatment Report – NPCA-99a & 99b Or NPMA-99a & 99b (Termite State)

2. Builders Certification (not for endorsement binder)

3. Health Authority Approval if needed.

4. Flood insurance (elevation cert noted as SFHA)

 

High Ratio loan: 90.01 % and higher

1. 1. Subterranean Termite Treatment Report – NPCA-99a & 99b Or NPMA-99a & 99b (Termite State)

2. Builder cert. (HUD 92541)

3. 1-year warranty (HUD 92544)

4. 10-year warranty

Or

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


Sincerely,


JP Piccinini


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


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Phone: 800-683-5651
Dated: December 22nd 2011
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About JP: JP Piccinini is an entrepreneur, philanthropist, proud dad and the Founder, Broker and Owner of JP a...

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JP And Associates REALTORS
6175 Main Street #355 Frisco Texas 75034
Frisco, TX
972-375-9448
4692875503

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