What are the inspection requirements for new construction to obtain maximum FHA financing?

The following requirements apply to new construction properties:

Proposed Construction - The Mortgagee must obtain one of the following:

  • copies of the building permit and Certificate of Occupancy (CO) (or equivalent);
  • three inspections (footing, framing and final) performed by an International Code Council Residential Combination Inspector (ICC RCI) or Combination Inspector (CI) on form HUD-92051, Compliance Inspection Report (for Modular Housing, footing and final only); or
  • three inspections (footing, framing and final) performed by the local authority with jurisdiction over the Property (for Modular Housing, footing and final only).

Under Construction - The Mortgagee must obtain:

  • copies of the building permit and Certificate of Occupancy (CO) (or equivalent); or
  • a final inspection issued by the local authority with jurisdiction over the Property or an ICC RCI or CI.

Existing for Less than One Year (100 percent complete) - The Mortgagee must obtain:

  • copies of the building permit and Certificate of Occupancy (CO) (or equivalent); or
  • a final inspection issued by the local authority with jurisdiction over the Property or an ICC RCI or CI.

Note: The requirements for Manufactured Housing new construction properties differ and are located in Handbook 4000.1 II.A.8.i.ii.(B)

For additional information see:


 

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-04431