Announcement 2019-025: FHA Updates

FHA published an update to its Single Family Housing Policy Handbook 4000.1 (SF Handbook) announced in FHA INFO #19-09.

FHA Updates - FHA Info #1909

With this update, NewRez is aligning with the changes and clarifications announced, as follows.

Exceptions to the FHA Policy Limiting the Number of Mortgages per Borrower

  • Added that a Borrower with an existing FHA-insured Mortgage on their own Principal Residence may qualify as a non-occupying co-Borrower on other FHA-insured Mortgages.



  • Updated to clarify that if the gift funds are not verified in the Borrower’s account, but obtained via check or wire transfer, the donor’s bank statement must be provided and must evidence sufficient funds


  • Removed requirements for a 10-year warranty on new construction
  • Clarified that for properties existing for less than one year both a building permit or final inspection and an appraisal evidencing property is 100 percent complete are required

Third Party Verification - Income, Earnest Money Deposits and Assets (Checking and Savings)

  • Allows third party verification vendors to directly verify and re-verify income. For reverification, the employment data must be current within 30 days of the date of verification (previously 35 days)
  • Allows third party verification vendors to directly verify assets and source of earnest money deposits. For assets, the date of the data contained in the completed verification must be current within 30 days of the date of the verification

Tip Income

  • Tip income has been added to the Handbook and is treated like bonus or overtime income
    Please reference the NewRez Lending Library and www.HUD.gov for specific details.


Please reference the Product Profiles page and HUD.gov for specific details.