The Basics on FHA Homebuilder Certification

FHA is still the largest insurer of mortgages in the country. FHA insures single family homes, and multi-family homes, and that includes manufactured homes as well. FHA works with lenders that have met their approval across the country. While FHA has approved lenders, there are also FHA approved builders.

There used to be a process to approve home builders, but that ended in 1995. Any builders that desire to sell homes that have HUD insurance, most follow the FHA approved builder guidelines, and comply with the Fair Housing Market Plans.

The builders need to examine the book on the HUD policies before making a decision to become an FHA approved builder. When the builder is looking to build a single property, there is a revised form that they should fill out, and that form is available at the local HUD office. The form has been reformed in order to comply with all new changes since 1995. At that time, an appraiser is assigned to review that form to make sure that everything listed on the form is consistent and correct. In addition, the builder needs to submit a form that is compliant with the Affirmative Fair Housing Marketing Plan, and this form keeps things in check to ensure that the builder is not discriminating. The building plan must include all the details of the project, including the number of units and all the amenities. Last but not least the builder must include how those eligible will have a chance to get into this property. This could be a lottery system, qualifications for subsidy programs, and even just helping them get qualified through an FHA lender.

Multi-unit properties are also being built by those who are FHA approved builders. They only need to fill out the HUD forms, if they plan to build five or more properties with HUD insurance. Even for this project, the builders must still submit An Affirmative Fair Housing Marketing Plan. The location will be reviewed, as well as how the units are being built to make sure that this is not viewed as discriminatory as well. HUD can request that plans are amended on the next phases of the building process if they intial plans are not satisfactory.

Every step is taken to be sure that all guidelines are followed, and that what takes place is fair. FHA believes that all homeowners should have the opportunity to get into a home, and a decent one at that. They set for these guidelines for us to follow, in order to improve how lending is being done. For more information, go to www.fhaloansnow.net.