source:
  type: guide
  id: hud-4000-1-ii-b-general-mortgage-insurance-eligibility
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. General
    Mortgage Insurance Eligibility (06/27/2025)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. General
    Mortgage Insurance Eligibility (06/27/2025).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-b-general-mortgage-insurance-eligibility-full
  canonical_id: hud-4000-1-ii-b-general-mortgage-insurance-eligibility-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. General
    Mortgage Insurance Eligibility (06/27/2025)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. General
      Mortgage Insurance Eligibility (06/27/2025)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'b. General Mortgage Insurance Eligibility (06/27/2025) i. Mortgage
      Purpose FHA offers various mortgage insurance programs which insure approved
      Mortgagees against losses on Mortgages. FHA-insured Mortgages may be used to
      purchase housing, improve housing, or refinance existing Mortgages. II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward
      Mortgages 1. Origination/Processing Handbook 4000.1 147 Last Revised: 11/26/2025
      (A) Purchase/Construction to Permanent The Borrower may finance the purchase
      of an existing one- to four-unit residence, and may also finance construction
      of a one- to four-unit residence through a Construction to Permanent (CP) Mortgage.
      Properties to be acquired through an unrecorded land contract must be treated
      as a purchase. (B) Rehabilitation (1) 203(k) Standard and Limited Rehabilitation
      Mortgages The Section 203(k) Rehabilitation Mortgage Insurance Program is used
      to: • rehabilitate an existing one- to four-unit Structure, which will be used
      primarily for residential purposes; • rehabilitate such a Structure and refinance
      the outstanding indebtedness on the Structure and the Real Property on which
      the Structure is located; or • purchase and rehabilitate the Structure and purchase
      the Real Property on which the Structure is located. (2) 203(h) and 203(k) for
      Disaster Victims The Section 203(h) Mortgage Insurance for Disaster Victims
      program allows FHA to insure Mortgages made by qualified Mortgagees to victims
      of a Presidentially-Declared Major Disaster Area (PDMDA) who have lost their
      housing, or whose housing was damaged and are in the process of rebuilding or
      buying another house. (C) Refinance A refinance transaction is used to pay off
      the existing debt or to withdraw equity from the Property with the proceeds
      of a new Mortgage for a Borrower with legal title to the subject Property. Types
      of Refinances FHA insures several different types of refinance transactions:
      1. Cash-out refinances are designed to pull equity out of the Property. 2. No
      cash-out refinances of FHA-insured and non FHA-insured Mortgages are designed
      to pay existing liens. These include: Rate and Term refinance, Simple Refinance,
      and Streamline Refinance. 3. Refinances for rehabilitation or repair (Section
      203(k)). II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured
      Housing Programs Forward Mortgages 1. Origination/Processing Handbook 4000.1
      148 Last Revised: 11/26/2025 ii. Borrower Eligibility (A) General Borrower Eligibility
      Requirements In order to obtain FHA-insured financing, all Borrowers must meet
      the eligibility criteria in this section. A party who has a financial interest
      in the mortgage transaction, such as the seller, builder or real estate agent,
      may not be a co-Borrower or a Co-signer. Exceptions may be granted when the
      party with the financial interest is a Family Member. (1) Social Security Number
      (a) Standard Each Borrower must provide evidence of their valid SSN to the Mortgagee.
      Exception Individuals employed by the World Bank, a foreign embassy or equivalent
      employer identified by HUD, state and local government agencies, Instrumentalities
      of Government, and HUD-approved Nonprofit organizations are not required to
      provide an SSN. (b) Required Documentation The Mortgagee must: • validate and
      document an SSN for each Borrower, co-Borrower, or Co-signer on the Mortgage
      by: o entering the Borrower’s name, date of birth, and SSN in the Borrower/address
      validation screen through FHAC; and o examining the Borrower’s original pay
      stubs; IRS Form W-2s, Wage and Tax Statement; valid Tax Returns obtained directly
      from the IRS; or other document relied upon to underwrite the Mortgage; and
      • resolve any inconsistencies or multiple SSNs for individual Borrowers that
      are revealed during Mortgage processing and underwriting using a service provider
      to verify the SSN with the SSA. (2) Borrower Age Limits The Borrower must be
      old enough to enter into a mortgage Note that can be legally enforced in the
      state, or other jurisdiction, where the Property is located. There is no maximum
      age limit for a Borrower. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A.
      Title II Insured Housing Programs Forward Mortgages 1. Origination/Processing
      Handbook 4000.1 149 Last Revised: 11/26/2025 (3) Borrower Minimum Decision Credit
      Score (a) Definition The Minimum Decision Credit Score (MDCS) refers to the
      credit score reported on the Borrower’s credit report when all reported scores
      are the same. Where three scores are reported, the median score is the MDCS.
      Where two differing scores are reported, the MDCS is the lowest score. Where
      only one score is reported, that score is the MDCS. An MDCS is determined for
      each Borrower. Where the Mortgage involves multiple Borrowers, the Mortgagee
      must determine the MDCS for each Borrower, and then select the lowest MDCS for
      all Borrowers. Where the Mortgage involves multiple Borrowers and one or more
      of the Borrowers do not have a credit score (non-traditional or insufficient
      credit), the Mortgagee must select the lowest MDCS of the Borrower(s) with credit
      score(s). (b) Eligibility Standard The Borrower is not eligible for FHA-insured
      financing if the MDCS is less than 500. (4) Borrower and Co-Borrower Ownership
      and Obligation Requirements To be eligible, all occupying and non-occupying
      Borrowers and co-Borrowers must take title to the Property in their own name
      or a living trust at settlement, be obligated on the Note or credit instrument,
      and sign all security instruments. In community property states, the Borrower’s
      spouse is not required to be a Borrower or a Co-signer. However, the Mortgage
      must be executed by all parties necessary to make the lien valid and enforceable
      under state law. (5) Co-signer Requirements Co-signers are liable for the debt
      and therefore, must sign the Note. Co-signers do not hold an ownership interest
      in the subject Property and therefore, do not sign the security instrument.
      (6) Principal Residence in the United States Non-occupying co-Borrowers or Co-signers
      must either be United States (U.S.) citizens or have a Principal Residence in
      the U.S. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured
      Housing Programs Forward Mortgages 1. Origination/Processing Handbook 4000.1
      150 Last Revised: 11/26/2025 (7) Military Personnel Eligibility (a) Standard
      Borrowers who are military personnel, who cannot physically reside in a Property
      because they are on Active Duty, are still considered owner occupants and are
      eligible for maximum financing if a Family Member of the Borrower will occupy
      the subject Property as their Principal Residence, or the Borrower intends to
      occupy the subject Property upon discharge from military service. (b) Required
      Documentation The Mortgagee must obtain a copy of the Borrower’s military orders
      evidencing the Borrower’s Active Duty status and that the duty station is more
      than 100 miles from the subject Property. The Mortgagee must obtain the Borrower’s
      intent to occupy the subject Property upon discharge from military service,
      if a Family Member will not occupy the subject Property as their Principal Residence.
      (8) Citizenship and Immigration Status U.S. citizenship is not required for
      Mortgage eligibility. (9) Residency Requirements The Mortgagee must determine
      the residency status of the Borrower based on information provided on the mortgage
      application and other applicable documentation. A Social Security card is not
      sufficient to prove immigration or work status. The following categories of
      individuals are eligible for FHA-insured financing in accordance with the requirements
      set forth below: (a) Permanent Residents (i) Standard A Borrower with lawful
      permanent resident status may be eligible for FHA-insured financing provided
      the Borrower satisfies the same requirements, terms, and conditions as those
      for U.S. citizens. (ii) Required Documentation The mortgage file must include
      evidence of lawful permanent residence and indicate that the Borrower is a lawful
      permanent resident on the URLA. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 1. Origination/Processing
      Handbook 4000.1 151 Last Revised: 11/26/2025 The U.S. Citizenship and Immigration
      Services (USCIS) within the Department of Homeland Security provides evidence
      of lawful permanent resident status. (b) Citizens of the Federated States of
      Micronesia, the Republic of the Marshall Islands, or the Republic of Palau (i)
      Standard A Borrower with citizenship in the Federated States of Micronesia,
      the Republic of the Marshall Islands, or the Republic of Palau may be eligible
      for FHA-insured financing provided the Borrower satisfies the same requirements,
      terms, and conditions as those for U.S. citizens. (ii) Required Documentation
      For Borrowers who are citizens of the Federated States of Micronesia, the Republic
      of the Marshall Islands, or the Republic of Palau, the mortgage file must include
      evidence of such citizenship. (10) Borrower Ineligibility Due to Delinquent
      Federal Non-Tax Debt (a) Standard Mortgagees are prohibited from processing
      an application for an FHA-insured Mortgage for Borrowers with delinquent federal
      non-tax debt, including deficiency Judgments and other debt associated with
      past FHA-insured Mortgages. Mortgagees are required to determine whether the
      Borrowers have delinquent federal non-tax debt. Mortgagees may obtain information
      on delinquent Federal Debts from public records, credit reports or equivalent,
      and must check all Borrowers against the Credit Alert Verification Reporting
      System (CAIVRS). (b) Verification If a delinquent Federal Debt is reflected
      in a public record, credit report or equivalent, or CAIVRS or an Equivalent
      System, the Mortgagee must verify the validity and delinquency status of the
      debt by contacting the creditor agency to whom the debt is owed. If the debt
      was identified through CAIVRS, the Mortgagee must contact the creditor agency
      using the contact phone number and debt reference number reflected in the Borrower’s
      CAIVRS report. If the creditor agency confirms that the debt is valid and in
      delinquent status as defined by the Debt Collection Improvement Act, then the
      Borrower is ineligible for an FHA-insured Mortgage until the Borrower resolves
      the debt with the creditor agency. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 1. Origination/Processing
      Handbook 4000.1 152 Last Revised: 11/26/2025 The Mortgagee may not deny a Mortgage
      solely on the basis of CAIVRS information that has not been verified by the
      Mortgagee. If resolved either by determining that the information in CAIVRS
      is no longer valid or by resolving the delinquent status as stated above, the
      Mortgagee may continue to process the mortgage application. (c) Resolution In
      order for a Borrower with verified delinquent Federal Debt to become eligible,
      the Borrower must resolve their federal non-tax debt in accordance with the
      Debt Collection Improvement Act. The creditor agency that is owed the debt can
      verify that the debt has been resolved in accordance with the Debt Collection
      Improvement Act. (d) Required Documentation The Mortgagee must include documentation
      from the creditor agency to support the verification and resolution of the debt.
      For debt reported through CAIVRS, the Mortgagee may obtain evidence of resolution
      by obtaining a clear CAIVRS report. (11) Eligibility Period for Borrowers Delinquent
      on FHA-Insured Mortgages If a Borrower is currently delinquent on an FHA-insured
      Mortgage, they are ineligible for a new FHA-insured Mortgage unless the delinquency
      is resolved. (12) Delinquent Federal Tax Debt (a) Standard Borrowers with delinquent
      Federal Tax Debt are ineligible. Tax liens may remain unpaid if the Borrower
      has entered into a valid repayment agreement with the federal agency owed to
      make regular payments on the debt and the Borrower has made timely payments
      for at least three months of scheduled payments. The Borrower cannot prepay
      scheduled payments in order to meet the required minimum of three months of
      payments. The Mortgagee must include the payment amount in the agreement in
      the calculation of the Borrower’s Debt-to-Income (DTI) ratio. (b) Verification
      Mortgagees must check public records and credit information to verify that the
      Borrower is not presently delinquent on any Federal Debt and does not II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward
      Mortgages 1. Origination/Processing Handbook 4000.1 153 Last Revised: 11/26/2025
      have a tax lien placed against their Property for a debt owed to the federal
      government. (c) Required Documentation The Mortgagee must include documentation
      from the IRS evidencing the repayment agreement and verification of payments
      made, if applicable. (13) Valid First Liens The Mortgagee must ensure that the
      mortgaged Property will be free and clear of all liens, except the insured Mortgage
      and any secondary liens permitted by FHA regulations at 24 CFR §§ 203.32 and
      203.41. (a) Consent of Non-borrowing Spouses If necessary to perfect a valid
      first lien under state law, the Mortgagee must require a non-borrowing spouse
      to execute either the security instrument or documentation indicating that they
      are relinquishing all rights to the Property. (b) Tax Liens Tax liens may remain
      unpaid if the Borrower has entered into a valid repayment agreement with the
      lien holder to make regular payments on the debt and the Borrower has made timely
      payments for at least three months of scheduled payments. The Borrower cannot
      prepay scheduled payments in order to meet the required minimum of three months
      of payments. Except for federal tax liens, the lien holder must subordinate
      the tax lien to the FHA- insured Mortgage. (14) Additional Eligibility Requirements
      for Nonprofit Organizations and State and Local Government Agencies (a) Eligibility
      Criteria for a Mortgage for Nonprofit Organizations (i) Standard HUD-approved
      Nonprofit organizations may be eligible for FHA-insured Mortgages. HUD-approved
      Nonprofit organizations are eligible for the same percentage of financing that
      is available to an owner-occupant on their Principal Residence. HUD-approved
      Nonprofit organizations may only obtain FHA-insured fixed rate Mortgages. II.
      ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs
      Forward Mortgages 1. Origination/Processing Handbook 4000.1 154 Last Revised:
      11/26/2025 (ii) Required Documentation A HUD-approved Nonprofit must be listed
      on the HUD Nonprofit Roster and intend to sell or lease the Property to Low-
      to Moderate-Income families. (b) Eligibility Criteria for a Mortgage for State
      and Local Government Agencies (i) Standard State and local government agencies
      and instrumentalities of government may obtain FHA-insured financing provided:
      • the agency has the legal authority to become the Borrower; • the particular
      state or local government is not in bankruptcy; and • there is no legal prohibition
      on obtaining a deficiency Judgment based solely on its status as a state and
      local government. State and local government agencies are eligible for the same
      percentage of financing that is available to an owner-occupant on their Principal
      Residence. State and local government agencies are not eligible for cash- out
      refinances. State and local government agencies may only obtain FHA-insured
      fixed rate Mortgages. (ii) Required Documentation The Mortgagee must obtain
      an opinion from counsel verifying the legal status requirements of the agency.
      State and local government agencies are not required to be listed on the HUD-approved
      Nonprofit roster. (15) Eligibility Requirements for Living Trusts (a) Property
      Held in Living Trusts The Mortgagee may originate a Mortgage for a living trust
      for a Property held by the living trust, provided the beneficiary of the living
      trust is a Co-signer and will occupy the Property as their Principal Residence,
      and the trust provides reasonable means to assure that the Mortgagee will be
      notified of any changes to the trust, including transfer of beneficial interest
      and any changes in occupancy status of the Property. II. ORIGINATION THROUGH
      POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward Mortgages
      1. Origination/Processing Handbook 4000.1 155 Last Revised: 11/26/2025 (b) Living
      Trusts and Security Instruments (i) Standard The name of the living trust must
      appear on the security instrument, such as the Mortgage, deed of trust, or security
      deed. The name of the individual Borrower must appear on the security instrument
      when required to create a valid lien under state law. The names of the owner-occupant
      and other Borrowers, if any, must also appear on the Note with the trust. The
      name of the individual Borrower is not required to appear on the property deed
      or title. (ii) Required Documentation The Mortgagee must obtain a copy of the
      trust documentation. (B) Excluded Parties The Mortgagee must establish that
      no participants are Excluded Parties and document the determination on form
      HUD-92900-LT, FHA Loan Underwriting and Transmittal Summary. (1) Borrower (a)
      Standard A Borrower is not eligible to participate in FHA-insured mortgage transactions
      if they are suspended, debarred, or otherwise excluded from participating in
      HUD programs. (b) Required Documentation The Mortgagee must check the HUD LDP
      List to confirm the Borrower’s eligibility to participate in an FHA-insured
      mortgage transaction. The Mortgagee must check SAM and follow appropriate procedures
      defined by that system to confirm eligibility for participation. The Mortgagee
      must check the “Yes” box on form HUD-92900-LT if the Borrower appears on either
      the LDP or SAM list. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title
      II Insured Housing Programs Forward Mortgages 1. Origination/Processing Handbook
      4000.1 156 Last Revised: 11/26/2025 (2) Other Parties to the Transaction (a)
      Standard A Mortgage is not eligible for FHA insurance if anyone participating
      in the mortgage transaction is listed on HUD’s LDP List or in SAM as being excluded
      from participation in HUD transactions. This may include but is not limited
      to: • seller (except where selling the Principal Residence) • listing and selling
      real estate agent • loan originator • loan processor • underwriter • Appraiser
      • 203(k) Consultant • Closing Agent • title company (b) Required Documentation
      The Mortgagee must check the HUD LDP List and SAM and follow appropriate procedures
      defined by that system to confirm eligibility for all participants involved
      in the transaction. iii. Occupancy Types (A) Principal Residence (1) Definition
      A Principal Residence refers to a dwelling where the Borrower maintains or will
      maintain their permanent place of abode, and which the Borrower typically occupies
      or will occupy for the majority of the calendar year. A person may have only
      one Principal Residence at any one time. (2) Standard (a) FHA Requirement for
      Owner Occupancy At least one Borrower must occupy the Property within 60 Days
      of signing the security instrument and intend to continue occupancy for at least
      one year. 203(k) Rehabilitation products may have different requirements for
      the length of time to occupy the Property. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 1. Origination/Processing
      Handbook 4000.1 157 Last Revised: 11/26/2025 (b) FHA-Insured Mortgages on Principal
      Residences FHA will not insure more than one Property as a Principal Residence
      for any Borrower, except as noted below. FHA will not insure a Mortgage if it
      is determined that the transaction was designed to use FHA mortgage insurance
      as a vehicle for obtaining Investment Properties, even if the Property to be
      insured will be the only one owned using FHA mortgage insurance. Properties
      previously acquired as Investment Properties are not subject to these restrictions.
      (c) Exceptions to the FHA Policy Limiting the Number of Mortgages per Borrower
      The table below describes the only circumstances in which a Borrower with an
      existing FHA-insured Mortgage for a Principal Residence may obtain an additional
      FHA-insured Mortgage on a new Principal Residence. Policy Exceptions Eligibility
      Requirements Relocation A Borrower may be eligible to obtain another FHA- insured
      Mortgage without being required to sell an existing Property covered by an FHA-insured
      Mortgage if the Borrower is: • relocating or has relocated for an employment-
      related reason; and • establishing or has established a new Principal Residence
      in an area more than 100 miles from the Borrower’s current Principal Residence.
      If the Borrower moves back to the original area, the Borrower is not required
      to live in the original house and may obtain a new FHA-insured Mortgage on a
      new Principal Residence, provided the relocation meets the two requirements
      above. Increase in family size A Borrower may be eligible for another house
      with an FHA-insured Mortgage if the Borrower provides satisfactory evidence
      that: • the Borrower has had an increase in legal dependents and the Property
      now fails to meet family needs; and • the Loan-to-Value (LTV) ratio on the current
      Principal Residence is equal to or less than 75% or is paid down to that amount,
      based on the outstanding Mortgage balance and a current residential appraisal.
      II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing
      Programs Forward Mortgages 1. Origination/Processing Handbook 4000.1 158 Last
      Revised: 11/26/2025 Policy Exceptions Eligibility Requirements Vacating a jointly-owned
      Property A Borrower may be eligible for another FHA-insured Mortgage if the
      Borrower is vacating (with no intent to return) the Principal Residence which
      will remain occupied by an existing co-Borrower. Non-occupying co-Borrower A
      non-occupying co-Borrower on an existing FHA- insured Mortgage may qualify for
      another FHA-insured Mortgage on a new Property to be their own Principal Residence.
      A Borrower with an existing FHA-insured Mortgage on their own Principal Residence
      may qualify as a non- occupying co-Borrower on other FHA-insured Mortgages.
      (3) Required Documentation The Borrower must indicate on the URLA (Fannie Mae
      Form 1003/Freddie Mac Form 65) that the Property will be the Borrower’s Principal
      Residence and certify to that fact on form HUD-92900-A. (B) Secondary Residence
      (1) Definition Secondary Residence refers to a dwelling that a Borrower occupies
      in addition to their Principal Residence, but less than a majority of the calendar
      year. A Secondary Residence does not include a Vacation Home. (2) Standard Secondary
      Residences are only permitted with written approval from FHA after a determination
      that: • the Borrower has no other Secondary Residence; • the Secondary Residence
      will not be a Vacation Home or be otherwise used primarily for recreational
      purposes; • the commuting distance to the Borrower’s workplace creates an undue
      hardship on the Borrower and there is no affordable rental housing meeting the
      Borrower’s needs within 100 miles of the Borrower’s workplace; and • the maximum
      mortgage amount is 85 percent of the lesser of the appraised value or sales
      price. (3) Required Documentation The Mortgagee must demonstrate the lack of
      affordable rental housing, and include: II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 1. Origination/Processing
      Handbook 4000.1 159 Last Revised: 11/26/2025 • a satisfactory explanation of
      the need for a Secondary Residence and the lack of available rental housing;
      and • written evidence from local real estate professionals who verify a lack
      of acceptable housing in the area. (C) Investment Property (1) Definition An
      Investment Property refers to a Property that is not occupied by the Borrower
      as a Principal or Secondary Residence. (2) Standard Investment Properties are
      not eligible for FHA insurance. Exception Investment Properties are eligible
      if the borrower is a HUD-approved nonprofit Borrower, or a state and local government
      agency, or an Instrumentality of Government. Investment Properties are eligible
      for insurance under the HUD Real Estate Owned Purchasing product, except under
      the 203(k) program. iv. Property Eligibility and Acceptability Criteria (A)
      General Property Eligibility The Property must be located within the U.S., Puerto
      Rico, Guam, the Virgin Islands, the Commonwealth of the Northern Mariana Islands,
      or American Samoa. (1) Special Flood Hazard Areas The Mortgagee must determine
      if a Property is located in a Special Flood Hazard Area (SFHA) as designated
      by the Federal Emergency Management Agency (FEMA). The Mortgagee must obtain
      flood zone determination services, independent of any assessment made by the
      Appraiser, to cover the Life of the Loan Flood Certification. A Property is
      not eligible for FHA insurance if: • a residential building and related improvements
      to the Property are located within any SFHA Zone beginning with the letter A,
      an SFHA, or any Zone beginning with the letter V, a Coastal High Hazard Area,
      and insurance under the National Flood Insurance Program (NFIP) is not available
      in the community; or II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title
      II Insured Housing Programs Forward Mortgages 1. Origination/Processing Handbook
      4000.1 160 Last Revised: 11/26/2025 • the improvements are, or are proposed
      to be, located within the Coastal Barrier Resources System (CBRS). To be eligible
      for FHA insurance, a Property located in an SFHA must be in a community that
      participates in the NFIP and has NFIP available, regardless of whether the Borrower
      obtains NFIP coverage. (a) Flood Insurance (i) Definitions Flood Insurance refers
      to insurance provided by an NFIP or a Private Flood Insurance (PFI) policy that
      covers physical damage by floods. An NFIP policy refers to insurance managed
      by the Federal Emergency Management Agency (FEMA) that covers physical damage
      by floods. A PFI policy refers to insurance provided by a private insurance
      carrier that covers physical damage by floods. (ii) Standard Eligible Properties
      If any portion of the dwelling and related Structures or equipment essential
      to the Property Value is located in an SFHA and NFIP insurance is available
      in that community, the Mortgagee must ensure the Borrower obtains and maintains
      Flood Insurance. Required Flood Insurance Coverage For Properties located within
      an SFHA, Flood Insurance must be maintained for the life of the Mortgage in
      an amount at least equal to the lowest of the following: • 100 percent replacement
      cost of the insurable value of the improvements, which consists of the development
      or project cost less estimated land cost; • the maximum amount of NFIP insurance
      available with respect to the particular type of Property; or • the outstanding
      principal balance of the Mortgage. Requirements for PFI If the Borrower purchases
      a PFI policy in lieu of an NFIP policy, the Mortgagee must ensure the PFI policy
      meets the following requirements: • is issued by an insurance company that is
      licensed, admitted, or otherwise approved to engage in the business of insurance
      in the II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured
      Housing Programs Forward Mortgages 1. Origination/Processing Handbook 4000.1
      161 Last Revised: 11/26/2025 state or jurisdiction in which the Property to
      be insured is located, by the insurance regulator of the state or jurisdiction;
      or, in the case of a policy of difference in conditions, multiple peril, all
      risk, or other blanket coverage insuring nonresidential commercial property,
      is recognized, or not disapproved, as a surplus lines insurer by the insurance
      regulator of the state or jurisdiction where the Property to be insured is located;
      • provides Flood Insurance coverage that is at least as broad as the coverage
      provided under a standard Flood Insurance policy under the NFIP for the particular
      type of Property, including when considering exclusions and conditions offered
      by the insurer; • includes deductibles that are no higher than the specified
      maximum, and includes similar nonapplicability provisions, as under a standard
      Flood Insurance policy under the NFIP; • includes a requirement for the insurer
      to provide written notice 45 Days before cancellation or nonrenewal of Flood
      Insurance coverage to the Borrower and the Mortgagee. In cases where the Mortgagee
      has assigned the loan to HUD, the insurer must provide notice to HUD and, where
      applicable, to the Borrower; • includes information about the availability of
      Flood Insurance coverage under the NFIP; • includes a mortgage interest clause
      similar to the clause contained in a standard Flood Insurance policy under the
      NFIP; • includes a provision requiring the Borrower to file suit no later than
      one year after the date of a written denial for all or part of a claim under
      the policy; and • contains cancellation provisions that are as restrictive as
      the provisions contained in a standard Flood Insurance policy under the NFIP.
      (iii) Private Flood Insurance Policy Compliance Aid Definition The Private Flood
      Insurance (PFI) Policy Compliance Aid is the statement: “This policy meets the
      definition of private flood insurance contained in 24 CFR 203.16a(e) for FHA-insured
      mortgages.” Standard The PFI Policy Compliance Aid may be made by the insurance
      provider, attesting that a PFI policy meets the requirements of Flood Insurance.
      The Mortgagee may rely on the PFI Policy Compliance Aid to determine whether
      a PFI policy meets the Flood Insurance requirements. In the absence of the PFI
      Policy Compliance Aid within the policy, a Mortgagee may review the policy to
      determine if it meets FHA requirements or rely II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 1. Origination/Processing
      Handbook 4000.1 162 Last Revised: 11/26/2025 on the insurance agent or carrier
      to separately provide the PFI Policy Compliance Aid language. (iv) Required
      Documentation For Properties located within an SFHA, the Mortgagee must include
      in the case binder: • a Life of Loan Flood Certification for all Properties;
      • if applicable, include a: o FEMA Letter of Map Amendment (LOMA); o FEMA Letter
      of Map Revision (LOMR); or o FEMA NFIP Elevation Certificate (FEMA Form FF-206-FY-
      22-152); and • a copy of the certificate of Flood Insurance or complete copy
      of the Flood Insurance policy, if required. (v) Required Reporting The Mortgage
      must report the required Flood Insurance information in the insurance application
      screen in FHAC. (b) Eligibility for New Construction in SFHAs If any portion
      of the dwelling and related Structures or equipment essential to the Property
      Value is located in an SFHA, the Property is not eligible for FHA mortgage insurance,
      unless the Mortgagee: • obtains a FEMA-issued final LOMA or LOMR that removes
      the Property from the SFHA; or • obtains a FEMA NFIP Elevation Certificate (FEMA
      Form FF-206-FY- 22-152). The Elevation Certificate must document that the lowest
      floor of the residential building, including the basement, and all related Structures
      or equipment essential to the Property Value are built above the 100-year flood
      elevation in compliance with the NFIP criteria; and • ensures the Borrower obtains
      Flood Insurance. (c) Eligibility for Existing Construction in SFHAs When any
      portion of the residential improvements is determined to be located within an
      SFHA, Flood Insurance must be obtained. (d) Eligibility for Condominiums in
      SFHAs The Mortgagee must ensure the Condominium Association obtains Flood Insurance
      on buildings located within the SFHA. The Flood Insurance coverage must protect
      the interest of the Borrowers who hold title to an individual unit, as well
      as the common areas of the Condominium Project. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 1. Origination/Processing
      Handbook 4000.1 163 Last Revised: 11/26/2025 (e) Eligibility for Manufactured
      Housing in SFHAs The finished grade level beneath the Manufactured Home must
      be at or above the 100-year return frequency flood elevation. If any portion
      of the dwelling and related Structures or equipment essential to the Property
      Value for both new and existing Manufactured Homes is located in an SFHA, the
      Property is not eligible for FHA mortgage insurance, unless the Mortgagee: •
      obtains a FEMA-issued LOMA or LOMR that removes the Property from the SFHA;
      or • obtains a FEMA NFIP Elevation Certificate (FEMA Form FF-206-FY- 22-152)
      showing that the finished grade beneath the Manufactured Home is at or above
      the 100-year return frequency flood elevation; and • ensures the Borrower obtains
      Flood Insurance. (f) Restrictions on Property Locations within Coastal Barrier
      Resources System In accordance with the Coastal Barrier Resources Act, a Property
      is not eligible for FHA mortgage insurance if the improvements are or are proposed
      to be located within the Coastal Barrier Resources System. (2) Seller Must Be
      Owner of Record (a) Standard To be eligible for a mortgage insured by FHA, a
      Property must be purchased from the owner of record. The transaction may not
      involve any sale or assignment of the sales contract. (b) Required Documentation
      The Mortgagee must obtain documentation verifying that the seller is the owner
      of record. Such documentation may include, but is not limited to: • a property
      sales history report; • a copy of the recorded deed from the seller; or • other
      documentation, such as a copy of a property tax bill, title commitment, or binder,
      demonstrating the seller’s ownership of the Property and the date it was acquired.
      This requirement applies to all FHA purchase money Mortgages, regardless of
      the time between resales. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A.
      Title II Insured Housing Programs Forward Mortgages 1. Origination/Processing
      Handbook 4000.1 164 Last Revised: 11/26/2025 (3) Restrictions on Property Flipping
      Property Flipping is indicative of a practice whereby recently acquired Property
      is resold for a considerable profit with an artificially inflated value. (a)
      Definition Property Flipping refers to the purchase and subsequent resale of
      a Property in a short period of time. (b) Standard (i) Time Restriction on Transfers
      of Title The eligibility of a Property for a Mortgage insured by FHA is determined
      by the time that has elapsed between the date the seller has acquired title
      to the Property and the resale date. The Seller’s Date of Acquisition refers
      to the date the seller acquired legal ownership of that Property. The Resale
      Date refers to the date all parties have executed the sales contract that will
      result in the FHA-insured Mortgage for the resale of the Property. (ii) Restriction
      on Resales Occurring 90 Days or Fewer after Acquisition A Property that is being
      resold 90 Days or fewer following the seller’s date of acquisition is not eligible
      for an FHA-insured Mortgage. (iii) Resales Occurring between 91 Days and 180
      Days after Acquisition A Mortgagee must obtain a second appraisal by another
      Appraiser if: • the resale date of a Property is between 91 and 180 Days following
      the acquisition of the Property by the seller; and • the resale price is 100
      percent or more over the price paid by the seller to acquire the Property. If
      the second appraisal supports a value of the Property that is more than 5 percent
      lower than the value of the first appraisal, the lower value must be used as
      the Property Value in determining the Adjusted Value. The cost of the second
      appraisal may not be charged to the Borrower. (iv) Exceptions to Time Restrictions
      on Resale Exceptions to time restrictions on resale are: II. ORIGINATION THROUGH
      POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward Mortgages
      1. Origination/Processing Handbook 4000.1 165 Last Revised: 11/26/2025 • Properties
      acquired by an employer or relocation agency in connection with the relocation
      of an employee; • resales by HUD under its REO program; • sales by other U.S.
      government agencies of Single Family Properties pursuant to programs operated
      by these agencies; • sales of Properties by nonprofits approved to purchase
      HUD- owned Single Family Properties at a discount with resale restrictions;
      • sales of Properties that are acquired by the seller by inheritance; • sales
      of Properties by state and federally-chartered financial institutions and Government-Sponsored
      Enterprises (GSE); • sales of Properties by local and state government agencies;
      and • sales of Properties within PDMDAs, only upon issuance of a notice of an
      exception from HUD. The restrictions listed above and those in 24 CFR § 203.37a
      do not apply to a builder selling a newly built house or building a house for
      a Borrower planning to use FHA-insured financing. (c) Required Documentation
      The Mortgagee must obtain a 12 month chain of title documenting compliance with
      time restrictions on resales. (4) Restriction on Investment Properties for Hotel
      and Transient Use (a) Standard The Mortgagee must obtain the Borrower’s agreement
      that Investment Properties using FHA-insured financing will not be used for
      hotel or transient purposes, or otherwise rented for periods of less than 30
      Days. (b) Required Documentation The Mortgagee must obtain a completed form
      HUD-92561, Borrower’s Contract with Respect to Hotel and Transient Use of Property,
      for each Mortgage secured by: • a one-unit Single Family dwelling with an Accessory
      Dwelling Unit (ADU); • a two- to four-unit dwelling; or • a Single Family dwelling
      that is one of a group of five or more dwellings owned by the Borrower within
      a two block radius. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title
      II Insured Housing Programs Forward Mortgages 1. Origination/Processing Handbook
      4000.1 166 Last Revised: 11/26/2025 (5) Mixed Use of Property Mixed Use refers
      to a Property suitable for a combination of uses including any of the following:
      commercial, residential, retail, office, or parking space. Mixed Use one- to
      four-unit Single Family Properties are eligible for FHA insurance, provided:
      • a minimum of 51 percent of the entire building square footage is for residential
      use; and • the commercial use will not affect the health and safety of the occupants
      of the residential Property. (6) Property Assessed Clean Energy Property Assessed
      Clean Energy (PACE) refers to an alternative means of financing energy and other
      PACE-allowed improvements for residential properties using financing provided
      by private enterprises in conjunction with state and local governments. Generally,
      the repayment of the PACE obligation is collected in the same manner as a special
      assessment tax; it is collected by the local government rather than paid directly
      by the Borrower to the party providing the PACE financing. Generally, the PACE
      obligation is also secured in the same manner as a special assessment tax against
      the Property. In the event of a sale, including a foreclosure sale, of the Property
      with outstanding PACE financing, the obligation will continue with the Property
      causing the new homeowner to be responsible for the payments on the outstanding
      PACE amount. In cases of foreclosure, priority collection of delinquent payments
      for the PACE assessment may be waived or relinquished. Properties which will
      remain encumbered with a PACE obligation are not eligible for FHA mortgage insurance.
      (7) Dwelling Unit Limitation (a) Standard If the Mortgage will be secured by
      an Investment Property, including Mortgages for Governmental Entities or nonprofit
      Borrowers, the Borrower may not have a financial interest, regardless of the
      ownership or financing type, in more than seven Dwelling Units within a two
      block radius. In determining the number of Dwelling Units owned by the Borrower,
      the Mortgagee must count each Dwelling Unit in a two-, three-, and four-family
      Property. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured
      Housing Programs Forward Mortgages 1. Origination/Processing Handbook 4000.1
      167 Last Revised: 11/26/2025 (b) Required Documentation If the Borrower owns
      six or more units within a two block radius, a map must be provided disclosing
      the locations of the units as evidence of compliance with FHA’s seven unit limitation.
      (B) Property Types FHA’s programs differ from one another primarily in terms
      of what types of Properties and financing are eligible. Except as otherwise
      stated in this Handbook 4000.1, FHA’s Single Family programs are limited to
      one- to four-family Properties that are owner-occupied Principal Residences.
      FHA insures Mortgages on Real Property secured by: • detached or semi-detached
      dwellings • Manufactured Housing • townhouses or row houses • individual units
      within FHA-Approved Condominium Projects FHA will not insure Single Family Mortgages
      secured by: • commercial enterprises • boarding houses • hotels, motels and
      condotels • tourist houses • private clubs • bed and breakfast establishments
      • other transient housing • Vacation Homes • fraternity and sorority houses
      (1) One-Unit A one-unit Property is a Single Family residential Property with
      a single Dwelling Unit, or with a single Dwelling Unit and a single ADU. (2)
      Two-Unit (a) Definition A two-unit Property is a Single Family residential Property
      with two individual Dwelling Units. (b) Standard The Mortgagee must obtain a
      completed form HUD-92561. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A.
      Title II Insured Housing Programs Forward Mortgages 1. Origination/Processing
      Handbook 4000.1 168 Last Revised: 11/26/2025 (3) Three- to Four-Unit (a) Definition
      A three- to four-unit Property is either: • a Single Family residential Property
      with three or four individual Dwelling Units; or • a Single Family residential
      Property with two individual Dwelling Units and one ADU or three individual
      Dwelling Units and one ADU. (b) Standard The Mortgagee must obtain a completed
      form HUD-92561. (c) Self-Sufficiency Rental Income Eligibility (i) Definition
      Net Self-Sufficiency Rental Income refers to the Rental Income produced by the
      subject Property over and above the Principal, Interest, Taxes, and Insurance
      (PITI). (ii) Standard The PITI divided by the monthly Net Self-Sufficiency Rental
      Income may not exceed 100 percent for three- to four-unit Properties. (iii)
      Calculation Net Self-Sufficiency Rental Income is calculated by using the Appraiser’s
      estimate of fair market rent from all units, including the unit the Borrower
      chooses for occupancy, and subtracting the greater of the Appraiser’s estimate
      for vacancies and maintenance, or 25 percent of the fair market rent. (4) Accessory
      Dwelling Unit (a) Definition An Accessory Dwelling Unit (ADU) refers to a single
      habitable living unit with means of separate ingress and egress that meets the
      Minimum Requirements for Living Unit. An ADU is a private space that is subordinate
      in size and can be added to, created within, or detached from a primary one-
      unit Single Family dwelling, which together constitute a single interest in
      real estate. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured
      Housing Programs Forward Mortgages 1. Origination/Processing Handbook 4000.1
      169 Last Revised: 11/26/2025 (b) Standard A Single Family residential one-unit
      Property with a single ADU remains a one-unit Property. For any Single Family
      residential Property with two or more units, a separate additional Dwelling
      Unit must be considered as an additional unit. (5) Condominium Unit (a) Definitions
      Condominium Unit (Unit) refers to real estate consisting of a one-family Dwelling
      Unit in a Condominium Project. A Condominium Project refers to a project in
      which one-family Dwelling Units are attached, semi-detached, detached, or Manufactured
      Home units, and in which owners hold an undivided interest in Common Elements.
      (b) Standard A Condominium Unit must be either located within an FHA-approved
      Condominium Project, meet FHA’s definition of a Site Condominium, or have completed
      the FHA Single-Unit Approval process before a Mortgage can be insured. (6) Site
      Condominiums (a) Definition A Site Condominium refers to: • a Condominium Project
      that consists entirely of Single Family detached dwellings that have no shared
      garages, or any other attached buildings; or • a Condominium Project that: o
      consists of Single Family detached or horizontally attached (townhouse-style)
      dwellings where the Unit consists of the dwelling and land; o does not contain
      any Manufactured Housing Units; and o is encumbered by a declaration of condominium
      covenants or a condominium form of ownership. Manufactured Housing condominium
      units may not be processed as Site Condominiums. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 1. Origination/Processing
      Handbook 4000.1 170 Last Revised: 11/26/2025 (b) Standard The Unit owner must
      be responsible for all required insurance and maintenance costs associated with
      the Unit dwelling, excluding landscaping, of the Site Condominium. Site Condominiums
      do not require Condominium Project Approval or Single- Unit Approval. (7) Manufactured
      Housing (a) Definition Manufactured Housing is a Structure that is transportable
      in one or more sections. It may be part of a Condominium Project, provided the
      project meets applicable FHA requirements. (b) Standard To be eligible for FHA
      mortgage insurance as a Single Family Title II Mortgage, all Manufactured Housing
      must: • be designed as a one-family dwelling; • have a floor area of not less
      than 400 square feet; • have the HUD Certification Label affixed or have obtained
      a letter of label verification issued on behalf of HUD, evidencing the house
      was constructed on or after June 15, 1976, in compliance with the Federal Manufactured
      Home Construction and Safety Standards; • be classified as real estate (but
      need not be treated as real estate for purposes of state taxation); • be built
      and remain on a permanent chassis; • be designed to be used as a dwelling with
      a permanent foundation built in accordance with the Permanent Foundations Guide
      for Manufactured Housing (PFGMH); and • have been directly transported from
      the manufacturer or the dealership to the site. (c) Required Documentation (i)
      HUD Certification Label If the appraisal indicates the HUD Certification Label
      is missing from the Manufactured Housing unit, the Mortgagee must obtain label
      verification from the Institute for Building Technology and Safety (IBTS). II.
      ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs
      Forward Mortgages 1. Origination/Processing Handbook 4000.1 171 Last Revised:
      11/26/2025 (ii) PFGMH Certification The Mortgagee must obtain a certification
      by an engineer or architect, who is licensed/registered in the state where the
      Manufactured Home is located, attesting to compliance with the PFGMH. The Mortgagee
      may obtain a copy of the foundation certification from a previous FHA-insured
      Mortgage, showing that the foundation met the guidelines published in the PFGMH
      that were in effect at the time of certification, provided there are no alterations
      and/or observable damage to the foundation since the original certification.
      If the Appraiser notes additions or alterations to the Manufactured Housing
      unit, the Mortgagee must ensure the addition was addressed in the foundation
      certification. If the additions or alterations were not addressed in the foundation
      certification, the Mortgagee must obtain: • an inspection by the state administrative
      agency that inspects Manufactured Housing for compliance; or • certification
      of the structural integrity from a licensed structural engineer if the state
      does not employ inspectors. (C) Property Valuation The Mortgagee is responsible
      for obtaining an appraisal to verify the value of the Property and the Property’s
      compliance with HUD’s Minimum Property Standards (MPS). (1) Integrity of Valuation
      Process: Communications with Mortgagees The Mortgagee must ensure the integrity
      of the valuation process by ensuring the valuation process is free from conflicts
      of interest and the appearance of conflicts of interest. (a) Standard The Mortgagee
      must prevent its staff, or any person who is compensated on a commission basis
      upon the successful completion of a Mortgage, or who reports, ultimately, to
      any officer of the Mortgagee not independent of the mortgage production staff
      and process, from having substantive communications with an Appraiser relating
      to or having an impact on valuation, including ordering or managing an appraisal
      assignment. Normal communications necessary to processing of a case is permissible,
      but cannot attempt to influence the Appraiser. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 1. Origination/Processing
      Handbook 4000.1 172 Last Revised: 11/26/2025 The underwriter who has responsibility
      for the quality of the appraisal report is allowed to request clarifications
      and discuss with the Appraiser components of the appraisal that influence its
      quality. (b) Exception for Smaller Mortgagees When absolute lines of independence
      cannot be achieved because of the Mortgagee’s small size and limited staff,
      the Mortgagee must clearly demonstrate that it has prudent safeguards to isolate
      its collateral evaluation process from influence or interference from its mortgage
      production process. (2) Communications with Third Parties The underwriter may
      request a clarification or reconsideration of value from the Appraiser, following
      the requirements in Reconsideration of Value. The Mortgagee may not discuss
      the contents of an appraisal with anyone other than the Borrower. (3) Verifying
      HUD’s Minimum Property Standards/Minimum Property Requirements As the on-site
      representative for the Mortgagee, the Appraiser provides preliminary verification
      that a Property meets the Property Acceptability Criteria, which include HUD’s
      MPR or MPS. When examination of a Property reveals noncompliance with the Property
      Acceptability Criteria, the Appraiser must note all repairs necessary to make
      the Property comply with HUD’s Property Acceptability Criteria, together with
      the estimated cost to cure. v. Legal Restrictions on Conveyance (Free Assumability)
      The Mortgagee must determine that any legal restrictions on conveyance conform
      with the requirements in 24 CFR § 203.41. In accordance with 24 CFR § 203.41
      (d)(1)(ii), FHA considers a reasonable share of appreciation to be at least
      50 percent. HUD does not object to affordable housing programs whereby the homeowner’s
      share of appreciation is on a sliding scale beginning at zero, provided that
      within two years the homeowner would be permitted to retain 50 percent of the
      appreciation. If the program sets a maximum sales price restriction, the Borrower
      must be permitted to retain 100 percent of the appreciation. A Property that
      contains leased equipment, or operates with a leased energy system or Power
      Purchase Agreement (PPA), may be eligible for FHA-insured financing but only
      when such agreements are free of restrictions that prevent the Borrower from
      freely transferring the Property. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT
      A. Title II Insured Housing Programs Forward Mortgages 1. Origination/Processing
      Handbook 4000.1 173 Last Revised: 11/26/2025 Such agreements are acceptable,
      provided they do not cause a conveyance (ownership transfer) of the insured
      Property by the Borrower to: • be void, or voidable by a third party; • be the
      basis of contractual liability of the Borrower (including rights of first refusal,
      preemptive rights or options related to a Borrower’s efforts to convey); • terminate
      or be subject to termination all or part of the interest held by the Borrower;
      • be subject to the consent of a third party; • be subject to limits on the
      amount of sales proceeds a Borrower can retain (e.g., due to a lien, “due on
      sale” clause, etc.); • be grounds for accelerating the insured Mortgage; or
      • be grounds for increasing the interest rate of the insured Mortgage. Any restrictions
      resulting from provisions of the lease or PPA do not conflict with FHA regulations
      unless they include provisions encumbering the Real Property or restricting
      the transfer of the Real Property. Legal restrictions on conveyance of Real
      Property (i.e., the house) that could require the consent of a third party (e.g.,
      energy provider, system owner, etc.), include but are not limited to, credit
      approval of a new purchaser before the seller can convey the Real Property,
      unless such provisions may be terminated at the option of, and with no cost
      to, the owner. If an agreement for an energy system lease or PPA could cause
      restriction upon transfer of the house, the Property is subject to impermissible
      legal restrictions and is generally ineligible for FHA insurance. II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward
      Mortgages 2. Allowable Mortgage Parameters Handbook 4000.1 174 Last Revised:
      11/26/2025 2. Allowable Mortgage Parameters This section provides the basic
      underwriting standards for Single Family (one- to four-units) Mortgages insured
      under the National Housing Act. When underwriting a Mortgage, the Mortgagee
      must determine the Borrower’s creditworthiness, capacity to repay, and available
      capital to support the Mortgage. The Mortgagee must also examine the Property
      to ensure it provides sufficient collateral for the Mortgage. For each Mortgage
      the Federal Housing Administration (FHA) insures, the Mortgagee must fully comply
      with the following underwriting procedures.'
  judgment: false
