05Government Obligations
Account Type Code 05: FHA Home-Improvement Loan
Account Type Code 05 means "FHA Home-Improvement Loan". A home-improvement installment loan insured by the Federal Housing Administration, most commonly under the Title I program. The federal insurance is what separates it from code 04. It is reported in Account Type (Field 15) of the Base Segment, 2 characters at position 84.
Specification
| Code | 05 |
|---|---|
| Meaning | FHA Home-Improvement Loan |
| Field | Account Type (Field 15) |
| Record | Base Segment |
| Length / position | 2 chars · 84–85 |
| Category | Government Obligations |
| CRRG reference | CRRG Exhibits 1 & 2 (Account Type Codes) |
What Account Type Code 05 means
- The federal insurance is the whole distinction. Same product shape as 04, different guarantee behind it.
- Still reported as Portfolio Type I. FHA insurance on a home-improvement loan does not turn it into a mortgage for Metro 2 purposes.
- Does NOT cover an FHA-insured purchase or refinance mortgage on the property. That is code 19, which is Portfolio Type M and carries the K3 segment.
- Does NOT mean the loan is government-held. The lender is a private FHA-approved lender and the government insures it against loss, so the consumer's counterparty on the tradeline is the lender, not the agency, until an insurance claim results in an assignment.
- IMPORTANT SOURCE NOTE: `src/content/metro2/fields.ts` labels code 05 as Family support. That list is a known defect. The metro2-guide Appendix A source of record, which is what this library publishes, defines 05 as FHA home-improvement.
When to report 05
- 1An FHA-approved lender reports a Title I property-improvement loan for a roof and structural repairs.
- 2A bank reports an FHA-insured improvement loan on a manufactured home classified as real property.
- 3A community lender reports an FHA-insured accessibility-modification loan on an owner-occupied residence.
- 4A specialty improvement lender reports a Title I loan that later goes delinquent and continues reporting under 05 through the charge-off cycle.
- 5A lender reports a Title I loan on a home the borrower also has an FHA-insured mortgage on, keeping the two tradelines under 05 and 19 respectively rather than collapsing them.
Reporting rules
- Report 05 only when the loan genuinely carries the FHA insurance. Uninsured improvement financing is 04.
- Do not attach the K3 segment. This is an installment tradeline, not a mortgage tradeline.
- Keep the code stable through delinquency, claim, and charge-off. Changing account type mid-life breaks the tradeline's continuity at the bureaus.
- If an insurance claim is paid and the loan is assigned to HUD, close your tradeline with a zero balance and let the assignee report their own.
- Do not report the FHA case number in a free-text or account-number field. It has no Base Segment home on an installment tradeline.
Codes and fields that must agree
A file can be structurally valid and still be wrong. These are the cross-field conditions Account Type Code 05 has to satisfy.
- Portfolio Type must be I (Installment), so Scheduled Monthly Payment Amount and a numeric Terms Duration in months are required.
- Credit Limit must be zero-filled. Portfolio Type I does not carry a credit limit.
- The K3 segment (mortgage type, property indicator) must be absent. K3 belongs with Portfolio Type M codes such as 19, 25, 26, and 2C.
- Highest Credit / Original Loan Amount holds the insured advance amount.
- Terms Frequency is normally M for these amortizing loans.
- If the loan is assigned to a federal agency, the assignee's tradeline carries the K1 segment naming the original creditor.
Common errors involving 05
Vocabulary
Keep browsing
- All 56 account type codes — the full set with categories and cross-field rules.
- Metro 2 codes cheat sheet — every CRRG code set on one page.
- Account Type field reference — position, length, and validation rules.
- Metro 2 format reference
See Account Type Code 05 in your own file
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