FHA First Tome Home Buyer New Home question?

This is straight from FHA guidelines:

Properties Under Construction or Existing Construction Less than One Year Old

Properties not meeting the criteria shown below are considered as under construction or existing construction less

than one year old and are limited to 90% financing. For a property to be eligible for greater than 90% financing,

whether or not it has been previously occupied, it must meet one of the criteria described below. Otherwise, the

property is classified as “under construction” or “less than one year old” and is limited to 90% financing.

• Construction was completed more than one year preceding the borrower’s signature on the Addendum to

Uniform Residential Loan Application; or

• The dwelling’s site plan and materials were approved by the Department of VA, an eligible DE underwriter, or

a builder under FHA’s builder certification procedures before construction began; or

• The local jurisdiction has issued both a building permit (prior to construction) and a Certificate of Occupancy

or equivalent (does not apply to condominiums or manufactured housing because of the special

circumstances regarding their approval); or

• The dwelling is covered by a builder’s ten-year insured warranty plan that is acceptable to HUD; or

• The dwelling will be moved to a new location and the property is eligible for an insured mortgage at the new

location and was approved by the Department of VA, an eligible DE underwriter, or a builder under FHA’s

builder certification procedures before construction began

No way would there have been a COO issued a year ago if the house is only 3-9 months old. A COO is not issued until the home is in move in condition. You can call the city to find out- but normally these can be obtained within weeks of calling to request it. Also if your realtor says it's been issued, then why doesn't he just fax a copy to the lender?

If the house is less than a year old it is considered new construction- however that should not hinder a loan- you just need the COO.

the year ago is puzzling; you did not volunteer the age of the home.

contact the manager of the lending firm to get more data on their

rules.........and then, contact a new lender without telling lender

#1 what you are doing [and pay no fees up front regardless what

they are for.]

the title agent may have a copy of the CO as it is required on all new construction that has never been titled to a new owner