Tag: new construction

FHA Mortgagee Letter 2020-36, FHA New Construction Requirements, Effective dates: May be used immediately for existing cases and must be used for FHA case numbers assigned on or after January 4, 2021. Multiple Updated Charts!

Written by: Tracey Rumsey, Staff Writer FHA new construction programs are fantastic to understand, especially when you are in low-inventory environments.  In this article, FHA makes a big update that will make this program much easier to use! Multiple FHA New Construction Charts Updated [See Supporting Resources] Rule Synopsis: Effective dates May be used immediately […]

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When Is an FHA New Construction Subject to Flipping Rules?

Question: I have a new construction property where the land was owned by the buyer, they deeded it to the builder to build a home.  FHA is considering this a flip. What new construction scenarios are considered flipping by FHA? Answer: New construction is basically a blanket exception to the flipping rules.  There are no […]

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New Construction – Termite Prevention/Inspection Requirements

Question: My client is purchasing a new construction property that is existing but has never been occupied.  Will VA allow a standard termite inspection when there is no inspection evidence of pre-treated wood? Answer: Termite treatment requirements can get complex, as states can have their own requirements that supersede VA’s requirements. It is always best […]

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Freddie Mac Postpones Income Changes Addressed in Bulletin 2019-20 – Postponed to July 2020

Written by: Lloyd Rutherford, Staff Writer It looks like Freddie Mac has received industry feedback that caused them to reconsider the timing of their new income guidelines.  Read through this article for the latest updates about how it may impact your business. Rule Synopsis: Freddie Mac is postponing the income changes they proposed in Bulletin […]

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FHA New Construction 1004D and Increased Property Value

Question: When a new construction appraisal is completed subject to “the completion of construction,” is it acceptable for an appraiser to revise/increase) the value on the 1004D due to updated sales data? If so, would they have to update the 1004, or would we just use the value and the date of the 1004D? Answer: The […]

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