HUD Handbook 4000.1 II.A.3
HUD Handbook 4000.1 Part II.A.3 (Underwriting the Property) for Title II Insured Housing Programs Forward Mortgages. Covers Property Acceptability Criteria, Minimum Property Requirements/Standards, defective conditions, water supply, lead paint, environmental hazards, and appraisal review.
Verbatim regulatory text
Verbatim provisions from HUD Handbook 4000.1 II.A.3 — 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.3 — Underwriting the Property
The Mortgagee must underwrite the completed appraisal report to determine if the Property provides sufficient collateral for the FHA-insured Mortgage.
HUD Handbook 4000.1 II.A.3.a.i — Defective Conditions
The Mortgagee must evaluate the appraisal in accordance with the requirements for Defective Conditions.
HUD Handbook 4000.1 II.A.3 — Property Eligibility Confirmation
The Mortgagee must confirm that the Property complies with the following eligibility criteria.
HUD Handbook 4000.1 II.A.3 — Environmental Hazards
The Mortgagee must confirm that the Property is free of all known environmental and safety hazards and adverse conditions that may affect the health and safety of the occupants, the Property’s ability to serve as collateral, and the structural soundness of the improvements.
HUD Handbook 4000.1 II.A.3 — Lead Paint
The Mortgagee must confirm that the Property is free of lead paint hazards.
HUD Handbook 4000.1 II.A.3 — Market Value Adequacy
The Mortgagee must ensure the Market Value of the Property is sufficient to adequately secure the FHA-insured Mortgage.
HUD Handbook 4000.1 II.A.3 — Wood Destroying Insects
For existing Properties, the Mortgagee must confirm that the Property is free of wood destroying insects and organisms.
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Source of record: https://claudeforcompliance.com/regs/hud-4000-1-ii-a-3/
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