12.28 MORTGAGE FILE DOCUMENTATION (05/17/17)

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Last updated: Nov 17, 2018 by Kacey Olson (Unlicensed)
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© RHS HB-1-3555 SFH Guaranteed Loan Program Technical Handbook


The lender's permanent mortgage file must contain the following information to support the single close transaction, in addition to documentation outlined in this Handbook:

  • Sufficient documentation to validate the actual cost to construct the subject home. (For example purchase contracts with the builder, Construction Loan Agreement, plans and specifications, receipts, invoices, lien waivers, etc.);
  • Appropriate documentation to verify the acquisition and transfer of ownership of the land if the borrower acquired the land as a gift or inheritance;
  • All HUD-1 forms and closing documents executed by all parties to the transaction and evidencing all costs to the homebuyer and property seller at the time of loan closing;
  • Certification by the borrower after conversion to the permanent loan, that the mortgaged property is free and clear of all liens other than the mortgage and all construction costs have been fully drawn;
  • The lender will retain all canceled checks, paid receipts, draw requests, lien waivers, change orders, title endorsements, etc. for all property-related requirements for new construction;
  • The lender must retain in its individual loan file, the appraiser's certificate of completion and a photograph of the completed property;
  • All third party inspections and warranties as defined in this Chapter.