How to Fill Out and Submit the HUD-92051 Compliance Inspection Report

HUD Form 92051, the FHA Compliance Inspection Report, is the document an FHA-approved inspector completes after a site visit to certify that a property’s construction or required repairs meet federal standards before a mortgage can close. The signed report goes to the lender, whose underwriter uses it to clear property conditions and move the loan toward final endorsement.¹

When You Need Form 92051

The form is used in two situations: new construction and repair conditions flagged on an existing home.

For new construction, HUD Handbook 4145.1 requires at least three inspections before the property can be insured:

An initial inspection after foundation forms are in place but before permanent construction begins. The inspector needs two workdays’ notice. An open excavation without foundation forms triggers a reinspection.
A framing inspection once the building is enclosed and the framing, plumbing, heating, electrical, and insulation are complete and still visible. One workday’s notice.
A final inspection when construction is finished and the property is ready for occupancy. One workday’s notice.

HUD may require extra inspections for unusual construction methods or when a builder’s workmanship is in question.²

For existing properties, the form is triggered when an FHA appraiser flags deficiencies against HUD’s Minimum Property Standards. Common triggers include peeling or chipping paint on homes built before 1978, roofing with fewer than two years of remaining life, cracked foundations, water damage, missing handrails, loose or exposed wiring, termite damage, and inadequate attic or crawl space ventilation. The appraiser lists the required repairs on Form HUD-92800.5B (the conditional commitment). The compliance inspector later verifies on Form 92051 that every listed item was completed acceptably.

If repairs cannot be finished before closing, the lender can set up a repair escrow, provided the home remains habitable and safe. The escrow must hold enough to cover the remaining work, and borrower labor costs cannot be included. The lender executes Form HUD-92300 (Mortgagee’s Assurance of Completion), and a Form 92051 inspection is still required once the work is done.³

Section 203(k) rehabilitation loans run on a different draw form (HUD-9746-A) during construction, but the final inspection at project end still uses Form 92051.⁴

What to Gather Before the Inspection

Bring these to the site:

The 10-digit FHA case number assigned to the mortgage.
The full property street address and the legal names of the mortgagor and the mortgagee.
A copy of Form HUD-92800.5B (the conditional commitment) or the original appraisal listing every required repair or construction condition. Without it, there is no checklist to verify against.
For new construction, the accepted plans and specifications. The form includes a checkbox for noting when these exhibits are missing.

The fillable PDF is available from the HUD forms library at hud.gov.⁵

Filling Out the Form

Form 92051 has a header and four parts.

Header

Enter the FHA case number, property address, mortgagor name, mortgagee name, and the inspection date. Indicate the inspection type: initial, framing, final, or repair. Verify the case number against the conditional commitment. A wrong number can decouple the report from the loan file.

Part I — On-Site Improvements

This is the substance of the report. The inspector checks numbered items describing what was observed:

Item 1: whether construction began before or after mortgage insurance approval (initial reports on new construction only).
Items 6 and 7: whether corrections required by a previous report, or repairs required by Form HUD-92800.5B, have not been acceptably completed. Either check means the property is not yet clear.
Item 8: corrections are essential. The inspector marks whether the issue will be examined at the next inspection or whether the builder should not conceal the work until it is reinspected.
Item 9: no noncompliance observed.
Items 12–14: final completion status. Item 12 means on-site improvements are acceptable pending the lender’s verification of listed items. Item 13 means improvements are acceptable except for items delayed by conditions beyond the builder’s control. Item 14 means everything is acceptably completed with no caveats.
Item 15: off-site improvements such as sidewalks or utilities, marked as needing correction, assured by escrow, or complete.¹

Part II — Explanation

Any item checked in Part I or Part III that needs elaboration is explained here. If a repair was not acceptable, describe what remains deficient and against what standard. If corrections are essential, specify what the builder must fix and whether concealment should be avoided. Vague language like “needs more work” will not satisfy the lender’s underwriter.

Part III — Conditions Not Requiring a Field Inspection

Some conditions from the commitment can be cleared with documentation instead of a site visit. Item 17 covers compliance with these non-field conditions. Item 18 confirms the termite soil treatment guarantee has been submitted. If documentation is still missing, Item 16 directs the lender to submit or resubmit the incomplete items.¹

Part IV — To Mortgagee

The inspector selects one of three designations telling the lender what happens next:

A, Noncompliance: the property shows extensive noncompliance with FHA requirements or good construction practice and is ineligible for mortgage insurance until corrections are made.
B, Compliance with Incomplete Items: the property is substantially compliant, but some items remain unfinished. The lender may submit Form HUD-92300 to proceed with closing while holding funds in escrow for the remaining work.
C, Final Acceptance: closing papers may be submitted, provided the mortgage credit analysis is acceptable and all construction conditions have been met. The inspector may note an escrow amount and deadline for any minor remaining items.¹

Who Can Sign

The form lists four inspector designations: Inspector, Appraiser, DE Staff Inspector, and HUD Inspector. Each signer supplies a date, signature, and ID number. Final and repair compliance inspections left at the job site also require a reviewer’s signature; without it, the report is not official.¹

The certification block requires the signer to affirm “no personal interest, present or prospective, in the property, applicant, or proceeds of the mortgage.” The inspector cannot be the builder, seller, or anyone else with a financial stake in the transaction.

For new construction, HUD Handbook 4145.1 allows local authorities approved by the HUD Field Office to perform the initial and framing inspections, but the fee inspector must perform the final inspection.²

Submitting the Report

The signed form goes to the FHA-approved lender handling the loan. Most lenders accept it through a secure digital portal; some still take certified mail or encrypted email. The underwriter then reviews the report against the conditional commitment.

The underwriter’s review focuses on a handful of checkpoints: whether the reviewer’s signature is present, whether Part I items 12 and 13 carry appropriate certification or escrow documentation, whether off-site improvements under Item 15 are completed or assured, and whether Part III non-field conditions and the termite treatment guarantee are satisfied. For a Part IV-B designation, the underwriter verifies that Form HUD-92300 is properly executed. For Part IV-C, the underwriter confirms the mortgage credit analysis is acceptable and all construction conditions are met before closing papers can be submitted.¹

Timely submission matters. Delays can push a rate lock past expiration or slow the transfer of title. If the inspection reveals unacceptable items, the lender notifies the borrower or builder that further repairs are needed before another inspection can be scheduled.

Penalties for False Statements

The form itself warns that anyone who knowingly submits a false claim or makes a false statement faces criminal and civil consequences. It cites 18 U.S.C. §§ 287, 1001, 1010, and 1012, along with 31 U.S.C. §§ 3729 and 3802. Together these can result in imprisonment of up to five years, fines, and civil penalties.¹

Under 18 U.S.C. § 1010, anyone who makes a false statement to influence HUD’s action on an insured mortgage, including forging documents or willfully overvaluing a property, faces a fine, up to two years in prison, or both.⁶ An inspector who checks “no noncompliance observed” on a property with obvious structural defects, or a lender employee who alters findings after the fact, risks prosecution under these provisions.

1
U.S. Department of Housing and Urban Development. HUD Form 92051 – Compliance Inspection Report
2
Department of Housing and Urban Development. HUD 4145.1 REV-2 – Compliance Inspections
3
U.S. Department of Housing and Urban Development. FHA Single Family Housing Policy Handbook 4000.1
4
U.S. Department of Housing and Urban Development. Draw Request Section 203(k)
5
U.S. Department of Housing and Urban Development. HUD Forms
6
Office of the Law Revision Counsel. 18 USC 1010 – Department of Housing and Urban Development and Federal Housing Administration Transactions