Buying from a builder, you might sign on a lot with nothing on it, a house in framing, or a finished home nobody has lived in. FHA treats those as three different situations, and the stage at the time of appraisal decides what inspections and builder paperwork the lender needs.
No concrete or permanent material has been placed. Digging the footings does not count as permanent.
From the first permanent material to 100 percent complete, with no Certificate of Occupancy yet.
100 percent complete, less than a year since the Certificate of Occupancy, and never occupied.
One twist: if someone has already lived in a home finished less than a year ago, FHA treats the sale as an existing home, not new construction.
The building permit and Certificate of Occupancy, or three inspections - footing, framing and final.
The building permit and Certificate of Occupancy, or a final inspection.
A copy of the Certificate of Occupancy, or a final inspection.
Inspections come from the local building authority or an ICC-certified inspector. Where no ICC-certified inspector is available, a disinterested, licensed and bonded architect, structural engineer or qualified tradesperson can do them.
Every FHA new construction file needs the builder's certification of plans, specifications and site (form HUD-92541) and a warranty of completion of construction (HUD-92544). The appraiser gets the HUD-92541 signed no more than 30 days before the appraisal was ordered. If the house is 90 percent complete or less, the appraiser also gets the floor plan and plot plan; between 90 and 100 percent, a list of what is left to install.
Add the builder's termite protection guarantee (HUD-NPMA-99-A), a well water test if there is a well, and a septic report where the local authority requires one. A builder who sells FHA regularly will have these ready. One who does not may slow your closing.
Building on your own lot instead of buying from a builder? That is a construction loan, covered at FHAConstructionMortgages.com. If the house closes with work still left to do, see unfinished at closing.
Where this comes from: HUD Handbook 4000.1, Update 17 issued November 26, 2025, section II.A.8.i New Construction (06/27/2025), parts i Definitions, iii Required Inspections, iv Required Documentation and v Documents to be Provided to Appraiser. Program rules change, and a lender may set stricter limits. Not a commitment to lend.
Send it over. We'll price the same loan independently and show you the two offers side by side - total cost, incentive counted, in writing. Then the decision is yours, made with real numbers.