HUD Handbook 4000.1 II.A.1.b
HUD effective date: 06/27/2025 · section II.A.1 · Handbook 4000.1 · revision effective 11/10/2026
HUD Handbook 4000.1 Part II.A.1.b (General Mortgage Insurance Eligibility) for Title II Insured Housing Programs Forward Mortgages. Covers borrower eligibility (SSN, age, residency), occupancy requirements, LDP/SAM excluded-party screening, property location, flood-zone eligibility, and identity-of-interest screening.
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Verbatim provisions from HUD Handbook 4000.1 II.A.1.b — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
HUD Handbook 4000.1 II.A.1.b.ii — Borrower Eligibility
In order to obtain FHA-insured financing, all Borrowers must meet the eligibility criteria in this section.
HUD Handbook 4000.1 II.A.1.b.ii — Social Security Number
Each Borrower must provide evidence of their valid SSN to the Mortgagee.
HUD Handbook 4000.1 II.A.1.b.ii — Owner-Occupancy / Intent to Occupy
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.
HUD Handbook 4000.1 II.A.1.b.ii — Required 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.
HUD Handbook 4000.1 II.A.1.b — Excluded-Parties Screening (LDP / SAM)
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.
HUD Handbook 4000.1 II.A.1.b — Flood Insurance for SFHA Properties
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.
HUD Handbook 4000.1 II.A.1.b — Property Location
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.
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