Form HUD-92561 Borrower’s Contract with Respect to Hotel and Transient Use of Property, in which a borrower agrees with HUD to not use the property, for hotel or transient use purposes, is required under 24 C.F.R. § 203.16, FHA Single Family Handbook 4000.1 Pt. II, A.1.b. iv. (A). (4). (b), A.1. b. iv.A.4. b, A.7.d. ii. (C), A.1. b. iv.B.2. b, & A.1.b. iv.B.3. b, & FHA Single Family Handbook 4155.1 Ch. 2.B.4. in connection with condominiums, multi-unit properties, and second home/ investment homes. We provide the following versions of the form for different property types: condos (Cx17814), multi-unit (Cx5014), and second home or investment (Cx48).
There was no specified timing requirement mentioned in 24 C.F.R. § 203.16, FHA Single Family Handbook 4000.1 Pt. II, A.1.b. iv. (A). (4). (b), A.1. b. iv.A.4. b, A.7.d. ii. (C), A.1. b. iv.B.2. b, & A.1.b. iv.B.3. b, or on the HUD-92561 document, to ensure all the eligibility requirements were met the document was previously included in the closing package. However, based on an evaluation of the FHA Single Family Handbook 4155.1 wherein we found that Ch. 2.B.4.a reflects “Form HUD 92561, The Borrower’s Contract for Hotel and Transient Use of Property is required at application for all multi-unit properties.” As this provides a specific timing for the document, we are generically updating the Borrower’s Contract with Respect to Hotel and Transient Use of Property documents (Cx17814) (Cx5014) (Cx48) to print in initial disclosure packages in addition to the closing packages.
Effective Date
These changes will be in effect on December 21, 2022. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
DR 138572