Form HUD-92544 Warranty of Completion: Claims and Penalties

HUD Form 92544, the Warranty of Completion of Construction, is a one-page document the builder of a new home signs at closing to guarantee that the house was built according to the approved plans and to federal minimum property standards, and to warrant it for one year against defects in workmanship, materials, and equipment. The form is required before the Federal Housing Administration will insure the mortgage, and the same document (numbered VA Form 26-1859 by the Department of Veterans Affairs) is used for VA-guaranteed new construction loans. The builder fills out the form and signs the warranty; you sign the acknowledgment at the bottom confirming you received a copy.¹

When the Form Is Required

Every FHA-insured loan on new construction needs a completed Form 92544 in the case binder the lender sends to HUD for endorsement. Without it, the federal mortgage insurance won’t be issued.¹

VA-guaranteed new construction loans use the same document under VA Form 26-1859.² A VA borrower’s new home must carry either this one-year builder’s warranty or a ten-year insurance-backed protection plan acceptable to HUD.³ If the builder chooses the ten-year plan instead, the veteran acknowledges that the VA will not assist with construction complaints, so it’s worth asking which one you’re getting.

The warranty is not required on the resale of an existing home, and it does not cover items built by a municipality or other government authority, such as public sidewalks or a sewer connection installed by the city.¹

What Goes on the Form

You can download a blank copy from HUD’s forms page at hud.gov.⁴ The identifying fields at the top tie the warranty to the loan file:

FHA or VA case number, assigned when the loan application was started
Lender’s name, address, and phone number
Full property address, including lot and block where applicable
Legal names of the purchasers as they appear on the loan documents
Builder’s name and address

For a manufactured home, there is an additional field for the manufacturer’s name, address, and phone number. That entry is separate from the builder because the factory produced the unit itself while the builder handled site work, foundation, and installation.¹

The Builder’s Certification

The body of the form is the warranty language. The builder doesn’t write anything in this section, but signing it means agreeing to all of it. The builder certifies, under penalty of perjury, that the property was constructed in compliance with HUD’s Minimum Property Requirements and Minimum Property Standards, or with the VA’s construction requirements.¹

Extra Certifications for Manufactured Homes

If a manufactured home was placed on the site, the warrantor makes three additional promises:

The site work and foundation (everything other than the manufactured unit itself) match the submitted construction exhibits.
The manufactured home was not damaged during transportation or installation.
If the home was delivered in separate sections, those sections were properly joined and sealed.

Signing, Delivery, and Later Owners

The form is executed at closing. The builder or seller signs and dates the warrantor section, entering their title (owner, president of the construction company, and so on). You then sign the acknowledgment at the bottom confirming receipt.¹

Completed copies go to both the buyer and the builder, and a copy goes into the lender’s case binder for endorsement. Keep your copy somewhere accessible. You will need it if a defect surfaces during the first year and the builder pushes back.

The warranty runs to successors and transferees, so if you sell the home during the warranty period the new owner inherits whatever coverage is left. The form also states that the warranty survives conveyance of title, delivery of possession, and any other final settlement, which means a builder cannot argue the warranty ended because the deal closed or because a separate purchase contract says otherwise.¹

What the One-Year Warranty Covers

Coverage comes in two parts, each with its own one-year clock.

The first is substantial conformity with the approved plans and specifications, including any approved changes. If the finished house deviates significantly from what was supposed to be built, the builder must correct it. You have one year from the date of title conveyance or initial occupancy, whichever comes first, to give written notice.

The second is defects in equipment, materials, or workmanship supplied or performed by the builder, subcontractors, or suppliers at any level, measured against acceptable trade practices. That one-year period runs from conveyance of title, or, for items completed after closing, from the date each item is finished.¹

The warranty is additive. The form says it operates “in addition to, and not in derogation of, all other rights and privileges” you have under any other law or instrument, so a separate manufacturer’s warranty on an appliance, for example, still runs alongside it.

Postponed Items and Early Title Transfer

Sometimes a buyer takes title before construction is fully complete, or items like landscaping or a driveway get pushed out because of weather or supply delays. The form handles both. If you took title before the dwelling was finished, the one-year clock for plan-conformity claims starts at completion of the dwelling or initial occupancy, whichever comes first, rather than at deed delivery. For individual postponed items, the warranty runs one year from the date each item is fully completed. Without that provision, a buyer who closed in November on a house with spring landscaping would lose months of warranty coverage on those items before they were installed.¹

How to Make a Claim

The single most important rule: put your notice in writing. Every warranty obligation is conditioned on the purchaser giving “written notice to the Warrantor” within the applicable one-year period.¹ A phone call to the builder’s office does not count. Send a dated letter that describes each defect, keep a copy, and use a delivery method that gives you proof of receipt.

Once the builder receives your written notice, the builder is required to remedy the defect at the builder’s own expense and to restore any work damaged while making the repair. There is no deductible or cost-sharing.

If the Builder Won’t Respond

For an FHA-insured loan, the escalation path uses HUD Form 92556, the Construction Complaint. Write to the builder first and allow a reasonable time for a response. If the builder ignores you or refuses, file Form 92556 with your mortgage lender; if the lender cannot resolve it, the complaint moves to the local HUD Field Office.⁵ A builder who fails to respond faces a temporary denial of participation with HUD.⁶ Complaints involving structural defects must be filed no later than four years after the date of the first mortgage insurance certification on the property.⁸ The one-year warranty on Form 92544 still applies; the enforcement mechanism runs through local authorities and, if needed, the courts.

The FHA Commissioner or the Secretary of Veterans Affairs reserves the right to make the final determination on whether a defect exists and whether the builder must fix it.¹ If administrative channels fail, the warranty is a legally enforceable document and an attorney familiar with construction disputes can pursue it in court.

Penalties for a False Warranty

Because the builder signs Form 92544 under penalty of perjury and the form is used to obtain federal mortgage insurance, a false certification is a federal crime. Under 18 U.S.C. § 1010, anyone who makes a false statement to influence HUD action faces up to two years in prison and a fine.⁹ The broader false-statements statute, 18 U.S.C. § 1001, carries up to five years in prison for knowingly making a false statement in any matter within federal jurisdiction.¹⁰ A builder who certifies compliance knowing the home doesn’t meet minimum property standards is committing fraud against both the homeowner and the insuring agency.

1
U.S. Department of Housing and Urban Development. HUD-92544 – Warranty of Completion of Construction
2
Department of Veterans Affairs. VA Form 26-1859 / HUD-92544 Warranty of Completion of Construction
3
Department of Veterans Affairs. LAPP SAR Newsletter September 2009
4
U.S. Department of Housing and Urban Development. HUD Forms
5
U.S. Department of Housing and Urban Development. Construction Complaint for New Constructed Property – HUD Form 92556
6
U.S. Department of Housing and Urban Development. HUD Construction Complaint Processing – Chapter 1
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8
U.S. Department of Housing and Urban Development. Construction Complaint for New Constructed Property – HUD Form 92556
For a VA-guaranteed loan, the process changed in 2025. The VA no longer intercedes directly in builder complaints and now directs veterans to their local building department, licensing boards, or legal counsel for serious issues.7Department of Veterans Affairs. Elimination of Builder Identification Number for Certain Guaranteed Loans and Updates to Builder Complaint Process
9
Office of the Law Revision Counsel. 18 USC 1010 – Department of Housing and Urban Development Transactions
10
Office of the Law Revision Counsel. 18 USC 1001 – Statements or Entries Generally