Written By: Stacey Sprain, Op-Ed Writer
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 op-ed writer, Ms. Stacey Sprain is currently 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.
