Removal of the Ten-Year Home Warranty Requirement

Alastair McFarlane
U.S. Department of Housing and Urban Development

The views expressed in this article are those of the author and do not represent the official positions or policies of the Office of Policy Development and Research, the U.S. Department of Housing and Urban Development, or the U.S. Government.

A HUD final rule, effective in March 2019, removed a requirement to qualify for high loan-to-value (LTV) Federal Housing Administration (FHA)-insured mortgages on newly constructed singlefamily homes. Specifically, a loan will not have to satisfy the requirement that either the property meets preapproval requirements or that the borrower is covered by a HUD-accepted, insured 10-year protection plan. Other requirements, such as a Warranty of Completion of Construction on new construction, will be retained.