How do I determine what stage of construction my property is in?

New Construction refers to Proposed Construction, Properties Under Construction, and Properties Existing Less than One Year.

-     Proposed Construction refers to a Property where no concrete or permanent material has been placed. Digging of footing is not considered permanent. 

-     Under Construction refers to the period from the first placement of permanent material to 100 percent completion with no Certificate of Occupancy (CO) or equivalent. 

-     Existing Less than One Year refers to a Property that is 100 percent complete and has been completed less than one year from the date of the issuance of the CO or equivalent. The Property must have never been occupied. 

FHA treats the sale of an occupied Property that has been completed less than one year from the issuance of the CO or equivalent as an existing Property.

For additional information see Handbook 4000.1 II.A.8.i.i. at

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-05056