Question about blueprints for FHA new construction

[Arizona Bob]

I received an assignment to do a new construction FHA recently. It's been quite a while since I have done one and there used to be a requirement that the lender provide three original blueprints to the appraiser, with specifications. I would stamp them with my signature and FHA # and verify their accuracy. Is this still a requirement? The lender has provided nothing other than the order. Has this requirement been changed?

 

[Jerry Bone Jr]

I received an assignment to do a new construction FHA recently. It's been quite a while since I have done one and there used to be a requirement that the lender provide three original blueprints to the appraiser, with specifications. I would stamp them with my signature and FHA # and verify their accuracy. Is this still a requirement? The lender has provided nothing other than the order. Has this requirement been changed?

It was eight years ago that "all things FHA" changed. Appraisers no longer have a CHUMS number.

 

[Arizona Bob]

I was mostly concerned about the package of items required to complete the appraisal, such as the blueprints, builder's cert., etc. to see if these items are still required by FHA.

Ben Vukicevich stated in a previous discussion, back in 2004:

"You must complete the Cost Approach but on a form from a recognized national cost service, such as Marshall Swift's 1007 form. Remember to add the marketing expense to the final Cost New+Site Improvements+Land Value by dividing it by.94, if you assume a 6% marketing expense.

In any event, you should have a complete package from the builder: DOM'S, blueprints, Builder's Certification, truss plans, plumbing layout, etc BEFORE you start the report. You should review the Builder's Cert for inaccuracies and comment on them in the report, if any."

http://appraisersforum.com/showthread.php?t=80236&highlight=blueprints

I was just wondering if this "complete package" is still a requirement, or if HUD has changed these requirements.

 

[Arizona Bob]

I guess a little more background information would be helpful. I arrived at the appointed time to meet the builder at the subject. I asked him for the blueprints and builder's cert, which has always been a requirement, and he looks at me like he doesn't know what I'm talking about. I told him that it's a requirement for FHA new construction (up to 1 year old) to have those items as part of the appraisal package. He then tells me he has never heard of this before, and he has closed three or four FHA loans in the subdivision over the last few months. I am trying to figure out if the requirement changed, and I no longer need to examine the blueprints and builder's cert, or if all of the other appraisals were done incorrectly.

 

[Mr Rex]

1a. What are the new construction documentation requirements for lenders on new construction?

FHA has revised the list of architectural exhibits needed for single-family properties one year old or less excluding manufactured homes and condominiums, which have separate requirements. Per Mortgagee Letter 2006-33, lenders

are not required to obtain, retain or submit to FHA construction plans and specifications, including:

• Plot Plan ​

• Floor Plan ​

• Exterior Elevations, Sections and Details ​

• Specifications, form HUD-92005 (Description of Materials)

FHA does require the submission and retention of the following documents for compliance review purposes:
• Builder’s Certification of Plans, Specifications and Site, form HUD-92541 ​

• Builder’s Warranty, form HUD-92544 (on high ratio loans that are greater than 90%). ​

• Building Permit and Certificate of Occupancy or 3 Compliance Inspections by an FHA Inspector (Footing, Framing and Final) or 10-Year Warranty and a Final Inspection by an FHA Inspector (refer to ML 01-27) ​

• Wood Infestation Report, NPCA 99a and 99b ​

• Local Health Authority well water analysis or septic report, where applicable

NOTE: [FONT=Times New Roman,Times New Roman]If a property is 100% complete (existing construction less than one year old), the lender must obtain and retain the following documents: [/FONT]

[FONT=Times New Roman,Times New Roman]• Builder’s Certification of Plans, Specifications and Site, form HUD-92541 [/FONT]​

[FONT=Times New Roman,Times New Roman]• Builder’s Warranty, form HUD-92544 (on high ratio loans only) [/FONT]​

[FONT=Times New Roman,Times New Roman]• Wood Infestation Report, NPCA 99a and 99b [/FONT]​

[FONT=Times New Roman,Times New Roman]• Local Health Authority well water analysis or septic report, where applicable [/FONT]

_______________________________________________________________________________________



December 21, 2006​

MORTGAGEE LETTER 2006-33 ​

TO: ALL APPROVED MORTGAGEES
ALL APPROVED APPRAISERS​

SUBJECT: New Construction - Architectural Exhibits Requirements
for Single Family Properties
The Federal Housing Administration (FHA) has revised the list of architectural exhibits needed for single-family properties one year old or less. Effective immediately, lenders need not obtain, retain or submit to FHA construction plans and specifications, including:​

· Plot Plan
· Floor Plan
· Exterior Elevations, Sections and Details
· Specifications, form HUD-92005 (Description of Materials)
The appraiser may obtain these documents from the builder. Appraisers, per the requirements of the Uniform Standards of Professional Appraisal Practices (USPAP), are already required to retain “plans, specifications or other documentation sufficient to identify the extent and character of the proposed improvements” (USPAP Standards Rule 1-2) and, thus, retention by the lender is redundant and an unnecessary burden. ​