HUD Handbook 4000.1 II.A.1.b — General Mortgage Insurance Eligibility

hud-4000-1-ii-a-1-b

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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source:
  type: regulation
  id: hud-4000-1-ii-a-1-b
  authority: HUD Handbook 4000.1 II.A.1.b — General Mortgage Insurance Eligibility
  description: |
    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.
obligations:
  - id: hud-4000-1-ii-a-1-b-borrower-eligibility
    canonical_id: hud-4000-1-ii-a-1-b-borrower-eligibility
    section: HUD Handbook 4000.1 II.A.1.b.ii — Borrower Eligibility
    description: |
      In order for [LENDER] to originate an FHA-insured Mortgage, all
      Borrowers must meet the FHA Borrower eligibility requirements set
      forth in HUD Handbook 4000.1 II.A.1.b (including SSN, age, residency
      status, and citizenship/lawful-residence requirements).
    type: do
    audit_question: For every FHA-insured Mortgage [LENDER] originates, can [LENDER] evidence that each Borrower met the FHA Borrower eligibility requirements (SSN, age, residency status, citizenship/lawful-residence) at application?
    program_review: Do the P&Ps ensure every Borrower is screened for FHA eligibility (SSN, age, residency status, citizenship/lawful-residence) at application?
    file_review: Pull originated files; confirm each Borrower met the SSN/age/residency/citizenship eligibility requirements at application.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: loan_officer
    secondary_owner_role: underwriter
    cadence: per-loan
    consequence: Originating an FHA-insured Mortgage for an ineligible Borrower is grounds for HUD finding and loss of insurability.
    tags:
      - round-d
      - regulator-direct
      - fha
      - hud-4000-1
      - borrower-eligibility
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 II.A.1.b.ii — Borrower Eligibility
      source_class: hud-handbook-4000-1
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
      snapshot_id: 3bf33edadcf6461d
      fetched_at: '2026-05-25T14:10:11Z'
      content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
      paragraph_quote: In order to obtain FHA-insured financing, all Borrowers must meet the eligibility
      drafter_attestation: |
        Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1
        Update 17, II.A.1.b.ii).
    promoted_at: '2026-05-25T17:33:48+00:00'
    promoted_from: hud-4000-1-ii-a-1-b-roundd-v1.yaml
  - id: hud-4000-1-ii-a-1-b-ssn-evidence
    canonical_id: hud-4000-1-ii-a-1-b-ssn-evidence
    section: HUD Handbook 4000.1 II.A.1.b.ii — Social Security Number
    description: |
      Each Borrower must provide evidence of their valid Social Security
      Number (SSN) to [LENDER]. [LENDER] must document the SSN evidence
      in the mortgage file for every FHA-insured Mortgage.
    type: do
    audit_question: For every Borrower on every FHA-insured Mortgage, can [LENDER] produce documentary evidence (in the mortgage file) of the Borrower's valid SSN?
    program_review: Do the P&Ps ensure each Borrower's valid-SSN evidence is obtained and documented in the mortgage file?
    file_review: Pull files; confirm documentary SSN evidence is present for each Borrower.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: loan_officer
    secondary_owner_role: compliance_officer
    cadence: per-loan
    consequence: Missing or invalid SSN evidence is a HUD finding; failure to verify SSN against SSA records may also trigger fraud-pattern review.
    tags:
      - round-d
      - regulator-direct
      - fha
      - hud-4000-1
      - borrower-eligibility
      - ssn
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 II.A.1.b.ii — Social Security Number
      source_class: hud-handbook-4000-1
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
      snapshot_id: 3bf33edadcf6461d
      fetched_at: '2026-05-25T14:10:11Z'
      content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
      paragraph_quote: Each Borrower must provide evidence of their valid SSN to the Mortgagee.
      drafter_attestation: |
        Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1
        Update 17, II.A.1.b.ii).
    promoted_at: '2026-05-25T17:33:48+00:00'
    promoted_from: hud-4000-1-ii-a-1-b-roundd-v1.yaml
  - id: hud-4000-1-ii-a-1-b-intent-to-occupy
    canonical_id: hud-4000-1-ii-a-1-b-intent-to-occupy
    section: HUD Handbook 4000.1 II.A.1.b.ii — Owner-Occupancy / Intent to Occupy
    description: |
      [LENDER] must obtain the Borrower's intent to occupy the subject
      Property as the Borrower's Principal Residence (consistent with
      FHA's owner-occupant program requirements) and document that intent
      in the mortgage file.
    type: do
    audit_question: For every FHA-insured Mortgage, can [LENDER] produce documented evidence of the Borrower's intent to occupy the subject Property as the Borrower's Principal Residence?
    program_review: Do the P&Ps ensure the Borrower's intent to occupy the subject Property as a Principal Residence is obtained and documented?
    file_review: Pull files; confirm documented intent-to-occupy as Principal Residence.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: loan_officer
    secondary_owner_role: underwriter
    cadence: per-loan
    consequence: Failure to obtain intent-to-occupy evidence is a HUD finding; occupancy fraud is the single largest origination-fraud category.
    tags:
      - round-d
      - regulator-direct
      - fha
      - hud-4000-1
      - occupancy
      - origination
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 II.A.1.b.ii — Owner-Occupancy
      source_class: hud-handbook-4000-1
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
      snapshot_id: 3bf33edadcf6461d
      fetched_at: '2026-05-25T14:10:11Z'
      content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
      paragraph_quote: The Mortgagee must obtain the Borrower’s intent to occupy the subject
      drafter_attestation: |
        Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1
        Update 17, II.A.1.b.ii). Apostrophe is U+2019 (curly).
    promoted_at: '2026-05-25T17:33:48+00:00'
    promoted_from: hud-4000-1-ii-a-1-b-roundd-v1.yaml
  - id: hud-4000-1-ii-a-1-b-60-day-occupancy
    canonical_id: hud-4000-1-ii-a-1-b-60-day-occupancy
    section: HUD Handbook 4000.1 II.A.1.b.ii — Required Occupancy
    description: |
      For every FHA-insured Mortgage [LENDER] originates, at least one
      Borrower must occupy the subject Property as the Borrower's
      Principal Residence within 60 Days of signing the security
      instrument.
    type: do
    audit_question: For every FHA-insured Mortgage, can [LENDER] evidence (at underwriting and post-closing) that at least one Borrower was committed to occupy the Property as a Principal Residence within 60 Days of signing the security instrument?
    program_review: Do the P&Ps ensure at least one Borrower is committed to occupy the Property as a Principal Residence within 60 Days of signing the security instrument?
    file_review: Pull files; confirm at least one Borrower's 60-Day occupancy commitment at underwriting (and any post-closing occupancy check the program runs).
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: underwriter
    secondary_owner_role: post_closer
    cadence: per-loan
    consequence: Closing on an FHA-insured Mortgage without a borrower committed to 60-day occupancy is a per-se HUD eligibility violation.
    tags:
      - round-d
      - regulator-direct
      - fha
      - hud-4000-1
      - occupancy
      - 60-day
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 II.A.1.b.ii — Required Occupancy
      source_class: hud-handbook-4000-1
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
      snapshot_id: 3bf33edadcf6461d
      fetched_at: '2026-05-25T14:10:11Z'
      content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
      paragraph_quote: At least one Borrower must occupy the Property within 60 Days of signing the
      drafter_attestation: |
        Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1
        Update 17, II.A.1.b.ii).
    promoted_at: '2026-05-25T17:33:48+00:00'
    promoted_from: hud-4000-1-ii-a-1-b-roundd-v1.yaml
  - id: hud-4000-1-ii-a-1-b-ldp-sam-screen
    canonical_id: hud-4000-1-ii-a-1-b-ldp-sam-screen
    section: HUD Handbook 4000.1 II.A.1.b — Excluded-Parties Screening (LDP / SAM)
    description: |
      [LENDER] must check the HUD Limited Denial of Participation (LDP)
      List and the System for Award Management (SAM) excluded-parties
      list and follow the appropriate procedures defined by HUD for every
      transaction participant on an FHA-insured Mortgage.
    type: do
    audit_question: For every FHA-insured Mortgage, can [LENDER] evidence (in the mortgage file) that the HUD LDP list and SAM were checked for every transaction participant, with appropriate follow-up if any participant was excluded?
    program_review: Do the P&Ps ensure the HUD LDP List and SAM are checked for every transaction participant on every FHA loan, with the appropriate HUD-defined follow-up if any participant is excluded?
    file_review: Pull files; confirm LDP and SAM checks for each transaction participant, and appropriate follow-up where a participant was excluded.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: underwriter
    cadence: per-loan
    consequence: Closing with an excluded transaction participant is a HUD finding and may bar FHA insurability.
    tags:
      - round-d
      - regulator-direct
      - fha
      - hud-4000-1
      - excluded-parties
      - ldp
      - sam
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 II.A.1.b — Excluded Parties
      source_class: hud-handbook-4000-1
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
      snapshot_id: 3bf33edadcf6461d
      fetched_at: '2026-05-25T14:10:11Z'
      content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
      paragraph_quote: The Mortgagee must check the HUD LDP List and SAM and follow
      drafter_attestation: |
        Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1
        Update 17, II.A.1.b).
    promoted_at: '2026-05-25T17:33:49+00:00'
    promoted_from: hud-4000-1-ii-a-1-b-roundd-v1.yaml
  - id: hud-4000-1-ii-a-1-b-flood-insurance-sfha
    canonical_id: hud-4000-1-ii-a-1-b-flood-insurance-sfha
    section: HUD Handbook 4000.1 II.A.1.b — Flood Insurance for SFHA Properties
    description: |
      For FHA-insured Mortgages secured by Properties located within a
      Special Flood Hazard Area (SFHA), [LENDER] must ensure that Flood
      Insurance is in place meeting FHA's requirements.
    type: do
    audit_question: For every FHA-insured Mortgage secured by a Property in a Special Flood Hazard Area, can [LENDER] evidence Flood Insurance coverage meeting FHA's requirements at closing and on a continuing basis?
    program_review: Does the program account for the SFHA condition — ensuring Flood Insurance meeting FHA requirements is in place at closing and maintained for Properties in a Special Flood Hazard Area?
    file_review: Spot-check files where the Property is in an SFHA; confirm Flood Insurance meeting FHA requirements at closing and on a continuing basis.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: underwriter
    secondary_owner_role: servicer_compliance_officer
    cadence: continuous
    consequence: Insuring a Property in an SFHA without compliant Flood Insurance is a HUD finding and triggers federal flood-insurance-compliance liability under 42 USC 4012a.
    tags:
      - round-d
      - regulator-direct
      - fha
      - hud-4000-1
      - flood-insurance
      - sfha
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 II.A.1.b — Flood Insurance Requirements
      source_class: hud-handbook-4000-1
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
      snapshot_id: 3bf33edadcf6461d
      fetched_at: '2026-05-25T14:10:11Z'
      content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
      paragraph_quote: For Properties located within an SFHA, Flood Insurance must be
      drafter_attestation: |
        Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1
        Update 17, II.A.1.b).
    promoted_at: '2026-05-25T17:33:49+00:00'
    promoted_from: hud-4000-1-ii-a-1-b-roundd-v1.yaml
  - id: hud-4000-1-ii-a-1-b-property-us-location
    canonical_id: hud-4000-1-ii-a-1-b-property-us-location
    section: HUD Handbook 4000.1 II.A.1.b — Property Location
    description: |
      The Property securing an FHA-insured Mortgage must be located within
      the United States, Puerto Rico, Guam, the Virgin Islands, the
      Commonwealth of the Northern Mariana Islands, or American Samoa.
      [LENDER] must verify the property location is within an eligible
      jurisdiction.
    type: do
    audit_question: For every FHA-insured Mortgage, can [LENDER] evidence that the subject Property is located within an FHA-eligible U.S. jurisdiction (U.S., Puerto Rico, Guam, USVI, CNMI, or American Samoa)?
    program_review: Do the P&Ps ensure the subject Property is verified to be within an FHA-eligible jurisdiction (U.S., Puerto Rico, Guam, USVI, CNMI, or American Samoa)?
    file_review: Pull files; confirm the Property location is within an eligible FHA jurisdiction.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: underwriter
    secondary_owner_role: loan_officer
    cadence: per-loan
    consequence: Insuring a property outside an FHA-eligible jurisdiction is a per-se HUD violation.
    tags:
      - round-d
      - regulator-direct
      - fha
      - hud-4000-1
      - property-eligibility
      - promoted
    primary_source:
      tier: 1
      authority: HUD Handbook 4000.1 II.A.1.b — Property Location
      source_class: hud-handbook-4000-1
      source_url: https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf
      snapshot_id: 3bf33edadcf6461d
      fetched_at: '2026-05-25T14:10:11Z'
      content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
      paragraph_quote: The Property must be located within the U.S., Puerto Rico, Guam, the Virgin Islands,
      drafter_attestation: |
        Copied verbatim from snapshot 3bf33edadcf6461d (HUD Handbook 4000.1
        Update 17, II.A.1.b).
    promoted_at: '2026-05-25T17:33:49+00:00'
    promoted_from: hud-4000-1-ii-a-1-b-roundd-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-25T17:33:49+00:00'
    candidate_path: obligations\_remediation\round-d-investor-guides\hud-4000-1-ii-a-1-b-roundd-v1.yaml
    candidates_promoted: 7
    candidates_skipped_existing: 0

Verbatim regulatory text (7)

Verbatim provisions from HUD Handbook 4000.1 II.A.1.b — General Mortgage Insurance Eligibility — 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

Source: HUD Handbook 4000.1 II.A.1.b.ii — Borrower Eligibility · source URL · snapshot 3bf33edadcf6461d

HUD Handbook 4000.1 II.A.1.b.ii — Social Security Number

Each Borrower must provide evidence of their valid SSN to the Mortgagee.

Source: HUD Handbook 4000.1 II.A.1.b.ii — Social Security Number · source URL · snapshot 3bf33edadcf6461d

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

Source: HUD Handbook 4000.1 II.A.1.b.ii — Owner-Occupancy · source URL · snapshot 3bf33edadcf6461d

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

Source: HUD Handbook 4000.1 II.A.1.b.ii — Required Occupancy · source URL · snapshot 3bf33edadcf6461d

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

Source: HUD Handbook 4000.1 II.A.1.b — Excluded Parties · source URL · snapshot 3bf33edadcf6461d

HUD Handbook 4000.1 II.A.1.b — Flood Insurance for SFHA Properties

For Properties located within an SFHA, Flood Insurance must be

Source: HUD Handbook 4000.1 II.A.1.b — Flood Insurance Requirements · source URL · snapshot 3bf33edadcf6461d

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,

Source: HUD Handbook 4000.1 II.A.1.b — Property Location · source URL · snapshot 3bf33edadcf6461d