If Inspections to be Made by HUD

If HUD will make the inspections during construction, the appraisal request must include

·   The construction exhibits required above, except for the certification regarding those exhibits.

·   The certification directly above item 38 on VA Form 26-1805.

·   A certification by the builder or lender that the construction exhibits submitted to VA, including any HUD-accepted change orders, are identical to those submitted to HUD.

·   A copy of the final HUD inspection report countersigned by HUD or a HUD Direct Endorsement underwriter, or a letter from HUD that the property has been completed in accordance with the approved plans and specifications and acceptable change orders, if any.  This requirement will be made a condition of the VA notice of value if not submitted with the appraisal request.

·   If the final HUD inspection report stipulates that certain incomplete work, such as street improvements, will be completed according to requirements specified by HUD elsewhere, a copy of the documentation that states those requirements must be furnished.  In that situation, there must also be a VA-approved escrow agreement and a subsequent VA or HUD re-inspection report or other acceptable evidence of satisfactory completion.  The veteran cannot be charged the cost of that re-inspection.

If there is a question about HUD consistency with VA in the interpretation

and application of VA/HUD Minimum Property Requirements, the VA field

station may impose a VA inspection, at an appropriate inspection stage, in

addition to the HUD inspections.