What new construction documents must be in the case binder for site-built housing and condominiums?

For a mortgage on a new construction site-built housing or condominium with an LTV greater than 90 percent, the mortgagee must obtain and include the following documents in the case binder: 
  • Form HUD-92541, Builder’s Certification of Plans, Specifications, and Site; 
  • Form HUD-92544, Warranty of Completion of Construction; 
  • Evidence that the Property was pre-approved or the 10-year warranty plan:       
    • Evidence of pre-approval is the Early Start Letter or copy of building permit issued by local authority prior to start of construction.       
    • For a 10-year warranty plan, evidence of acceptance or enrollment in the plan is required; the application alone is not acceptable. 
  • Required inspections; 
  • Wood Infestation Report, unless the Property is located in an area of no to slight infestation as indicated on HUD’s “Termite Treatment Exception Areas” list:       
    • Form HUD-NPMA-99-A, Subterranean Termite Protection Builder’s Guarantee, is required for all New Construction. If the building is constructed with steel, masonry or concrete building components with only minor interior wood trim and roof sheathing, no treatment is needed. The Mortgagee must ensure that the builder notes on the form that the construction is masonry, steel, or concrete.       
    • Form HUD-NPMA-99-B, New Construction Subterranean Termite Service Record, is required when the proposed Property is treated with a soil chemical termiticide.  The Mortgagee must reject the use of post-construction soil treatment when the termiticide is applied only around the perimeter of the foundation.  
  • Local Health Authority well water analysis and/or septic report, where required by the local jurisdictional authority.  
For a mortgage on a new construction site-built housing or condominium with an LTV of 90 percent or less, the mortgagee must obtain and include the following documents in the case binder:
  • Form HUD-92541, Builder’s Certification of Plans, Specifications, and Site; 
  • Final inspection or appraisal, if the Property is 100 percent complete; 
  • Wood Infestation Report, unless the Property is located in an area of no to slight infestation as indicated on HUD’s “Termite Treatment Exception Areas” list:      
    • Form HUD-NPMA-99-A, Subterranean Termite Protection Builder’s Guarantee, is required for all New Construction. If the building is constructed with steel, masonry or concrete building components with only minor interior wood trim and roof sheathing, no treatment is needed. The Mortgagee must ensure that the builder notes on the form that the construction is masonry, steel, or concrete.      
    • Form HUD-NPMA-99-B, New Construction Subterranean Termite Service Record, is required when the proposed Property is treated with a soil chemical termiticide. The Mortgagee must reject the use of post-construction soil treatment when the termiticide is applied only around the perimeter of the foundation. 
  • Local Health Authority well water analysis and/or septic report, where required by the local jurisdictional authority.  

For additional information see Handbook 4000.1 II.A.8.i.iii-iv. available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
 

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-04449