Written By: Stacey Sprain, Op-Ed Writer
Definition "Under Construction" Property
These are properties in which the first placement of concrete or other permanent materials has begun, but construction is not yet 100% complete.
Note-Any time an Early Start Approval Letter is present within the loan file, construction status must be treated as proposed construction.
High Ratio Loan- LTV >90% - Under Construction Documentation and Inspection Requirements
Copy of
• Plans and Specs
• HUD-92005 Description of Materials
• Plot Plan.
(Required by HUD to be reviewed by the underwriter as part of the Lenders file but not required to be part of the insuring file).
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.
HUD-92541 Builders Certification of Plans, Specifications and Site completed and signed by builder or builder's agent
HUD-92544 Warranty of Completion of Construction completed and signed by builder or builder's agent and purchasing borrowers
Health Authority Approval for private well and septic (if applicable)
Evidence of enrollment in a HUD-Approved 10-year Warranty Plan and HUD-92051 Compliance Inspection for final inspection completed by a HUD Roster Fee Inspector;or
Copy of building permit (or local jurisdiction equivalent to building permit); and
Copy of the Certificate of Occupancy (or local jurisdiction equivalent to COO)
Certification Letter signed by the borrower indicating that they have been provided with the Carpet Identification Number, Manufacturers Warranties and have seen the posted Insulation Certificate
Borrower’s acknowledgement that property was not approved by HUD prior to start of construction and HUD does not have authority to provide financial relief for any future property repairs.
Evidence of Flood insurance, if flood cert or elevation cert noted as SFHA. (If applicable)
HUD-92051 Compliance Inspection for final inspection completed by a HUD Roster Fee Inspector
Low Ratio Loan - LTV <=90% - Under Construction Documentation and Inspection Requirements
NPMA-99a & NPMA-99b Subterranean Termite Treatment Report (required only if property is in a HUD-designated Termite Tip Zone as indicated athttp://www.hud.gov/offices/hsg/sfh/ref/sfh1-23a.cfm.
HUD-92541 Builders Certification of Plans, Specifications and Site completed and signed by builder or builder's agent
Health Authority Approval for private well and septic (if applicable)
Evidence of Flood insurance, if flood cert or elevation cert noted as SFHA. (If applicable)
HUD-92051 Compliance Inspection for final inspection completed by a HUD Roster Fee Inspector
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.
