source:
  type: guide
  id: hud-4000-1-ii-c-property-charge-payment-history-review-requirements
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Property
    Charge Payment History Review Requirements (04/29/2024)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Property
    Charge Payment History Review Requirements (04/29/2024).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-c-property-charge-payment-history-review-requirements-full
  canonical_id: hud-4000-1-ii-c-property-charge-payment-history-review-requirements-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Property
    Charge Payment History Review Requirements (04/29/2024)
  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 — c. Property
      Charge Payment History Review Requirements (04/29/2024)
    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: 'c. Property Charge Payment History Review Requirements (04/29/2024)
      i. Definition Property Charges refer to obligations of the Borrower that include:
      • property taxes; • Hazard Insurance premiums; • applicable Flood Insurance
      premiums; • Ground Rents; • Condominium Fees; • Planned Unit Development (PUD)
      fees; • Homeowners’ Association (HOA) Fees; and • other special assessments
      that may be levied by municipalities or state law. ii. Standard The Mortgagee
      must determine if the Borrower has demonstrated the willingness to timely meet
      their financial obligations by analyzing the Borrower’s property charge payment
      history. The Mortgagee must analyze each applicable Property Charge for the
      preceding 24 months from the time of loan application, except for Hazard and
      Flood Insurance. The Mortgagee must take into consideration that some Borrowers
      seek a HECM due to financial difficulties, which may be reflected on the Borrower’s
      property II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured
      Housing Programs Reverse Mortgages 5. Performing the Financial Assessment of
      the Borrower Handbook 4000.1 627 Last Revised: 11/26/2025 charge payment history.
      The Mortgagee must also consider to what extent the proceeds of the HECM could
      provide a solution to any such financial difficulties. Where the Borrower owns
      no other real estate and has changed their Principal Residence within the last
      24 months, the Mortgagee must review the property charge payment history for
      the current Principal Residence and the most recent prior Principal Residence(s)
      for a combined 24 months. (A) Property Taxes The Borrower’s property tax payment
      history from all taxing authorities, including school, city, county, state,
      etc., must be verified for the preceding 24 months for all owned real estate.
      Verification may be in the form of written statements or online printouts from
      the taxing authority or through copies of bills and canceled checks or other
      equivalent proof of payment. Alternatively, the Mortgagee may obtain verification
      from a third-party vendor. Where the Mortgagee can document that property taxes
      were paid by the servicing Mortgagee through an escrow account, Mortgagees may
      rely upon monthly mortgage payment history reported on the credit report to
      establish property tax payment history. (1) Manufactured Homes Taxed as Personal
      Property The Mortgagee is not required to verify the Borrower’s personal property
      tax payment history for a Manufactured Home that is not taxed as real estate.
      (2) Waiver or Deferral of Property Taxes Where a taxing authority has permanently
      waived or otherwise permanently exempted the Borrower from payment of property
      taxes (i.e., taxes are not Due and Payable and do not accrue or result in a
      first lien against the Property), such taxes may be excluded from the expense
      analysis. Documentation for the waiver or exemption must be placed in the case
      binder. Where a Borrower is participating in a Real Estate Tax Deferral Program,
      such taxes may be excluded from the expense analysis. Documentation for the
      Real Estate Deferral Program that supports the exclusion of property tax expenses
      from the expense analysis must be placed in the case binder. (B) Hazard Insurance
      and Flood Insurance Mortgagees must determine whether the Property has Hazard
      Insurance and Flood Insurance, if applicable. The Mortgagee must review the
      insurance payment history to ensure continuous coverage for the preceding 12
      months. Copies of bills and canceled checks or equivalent proof of payment may
      be utilized. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured
      Housing Programs Reverse Mortgages 5. Performing the Financial Assessment of
      the Borrower Handbook 4000.1 628 Last Revised: 11/26/2025 (C) Ground Rent For
      all Properties subject to ground rents, Mortgagees must obtain from the lessor
      or its management agent a written statement documenting payments, or copies
      of bills and canceled checks for the preceding 24 months. (D) Condominium, PUD,
      and HOA Fees The Mortgagee must obtain verification of the Borrower’s Condominium,
      PUD, or HOA fee payment history for all owned real estate for the preceding
      24 months from the entity levying the fee or its authorized agent. In lieu of
      direct verification, copies of bills and canceled checks or equivalent proof
      of payment may be utilized. (E) Other Special Assessments Mortgagees must obtain
      for all owned real estate from the party levying the assessment or its management
      agent a written statement documenting payments, or copies of bills and canceled
      checks, or equivalent proof of payment for the preceding 24 months. iii. Satisfactory
      Property Charge Payment History The Mortgagee may consider the Borrower to have
      a satisfactory property charge payment history where, at the time of loan application,
      all property taxes, HOA, condominium, and PUD fees for all owned real estate
      are current and there were no property charge delinquencies in the previous
      24 months. If Hazard Insurance and Flood Insurance, if applicable, were not
      in place for the Borrower’s Principal Residence for the previous 12 months,
      the Borrower must obtain coverage and prepay for 12 months at or before mortgage
      closing. iv. Property Charge Payment History Requiring Further Analysis If a
      Borrower’s property charge payment history is not satisfactory, the Borrower’s
      property charge payment history requires additional analysis. The Mortgagee
      must determine whether late payments and/or the assessment of late fees or penalties
      were based on a disregard for financial obligations, an inability to manage
      debt, or Extenuating Circumstances. If the Mortgagee can document the late payments
      and/or the assessment of late fees or penalties were solely due to the servicing
      Mortgagee’s untimely payment from an escrow account, then the Mortgagee may
      consider the Borrower to have a satisfactory property charge payment history.
      As such, the late payment by the servicing Mortgagee is not considered an Extenuating
      Circumstance. Where the Borrower has not demonstrated the willingness to meet
      their financial obligations as stated in Satisfactory Property Charge Payment
      History and no II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II
      Insured Housing Programs Reverse Mortgages 5. Performing the Financial Assessment
      of the Borrower Handbook 4000.1 629 Last Revised: 11/26/2025 Extenuating Circumstances
      can be documented, the Mortgagee must, at a minimum, require a Fully Funded
      LESA. Where a Fully Funded LESA is required, the Mortgagee must still determine,
      through the financial assessment, that the HECM will provide the Borrower with
      a sustainable solution, permitting the satisfaction of financial obligations
      in a timely manner. See Final HECM Decision for additional information. v. Required
      Documentation The Mortgagee must document the property charge payment history
      analysis in the HECM file. Any explanation or documentation of late payments
      must be consistent with other information in the file.'
  judgment: false
