4602.12: Mortgage file documentation for Construction Conversion and Renovation Mortgages (10/31/18)

The Mortgage file for each Construction Conversion or Renovation Mortgage must contain:

Documentation that supports classification of the Mortgage as a Construction Conversion or a Renovation Mortgage
Sufficient documentation (for example: purchase contracts, plans and specifications, receipts, invoices, lien waivers etc.) on which to validate the actual cost to construct or renovate the home
A document that clearly shows the Seller's calculation of the purchase price and/or cost to construct
The Settlement/Closing Disclosure Statement or an alternative form required by law evidencing all costs to homebuyer and property seller at closing of the Interim Construction Financing
The Settlement/Closing Disclosure Statement for the closing of the Permanent Financing. In addition, the Mortgage file must contain the following documentation, when applicable:
For a Mortgage secured by a Manufactured Home, the manufacturer's invoice and the Manufactured Home Purchase Agreement
For a "no cash-out" refinance Mortgage secured by a Manufactured Home, documentation that supports at least one Borrower has been on title to the land for 12 months or more prior to the Effective Date of Permanent Financing
For a cash-out refinance Mortgage, documentation that supports at least one Borrower has been on title to the land for six months or more prior to the Effective Date of Permanent Financing
Appropriate documentation to verify the acquisition and transfer of ownership of the land if the Borrower acquired the land as a gift or by inheritance