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Minimum Standards Verbiage

Discussion in 'FHA/HUD and VA' started by Doug Meyer, Apr 19, 2010.

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  1. Doug Meyer

    Doug Meyer Senior Member

    0
    Sep 13, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Indiana
    A lender is requesting the following:

    The lender is wanting this exact verbiage "the subject property meets minimum property standards for existing dwellings as outlined in HUD Handbooks 4150.2 & 4905.1". Please have the appraiser add this exact wording. thank you.

    I have a "meets or exceeds minimal FHA/HUD property standard" verbiage in my report. Is the lender going a little overboard on this? I cannot find the usage of this verbiage in the manual, unless I am overlooking this!
     
  2. Happy Val

    Happy Val Sophomore Member

    0
    Oct 30, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Oregon
    I have had this request a few times and I finally just made it standard. I also note this exact verbage in USDA loans too. Unfortunately, when there are repairs, I always seem to get the email asking why I forgot to put in the statement. I try to explain that it doesn't meet those standards, but when the repairs are done, I will make note of it in the final. It's sad that they don't even seem to know what they are demanding.
     
  3. CANative

    CANative Elite Member

    122
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Is the subject property new or proposed construction?
     
  4. Doug Meyer

    Doug Meyer Senior Member

    0
    Sep 13, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Indiana
    Greg it is an existing dwelling.
     
  5. CANative

    CANative Elite Member

    122
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    The the verbiage would be "minimum property REQUIREMENTS." Not standards. I'd also leave out the "or exceeds" in the statement. Why expose yourself to additional scrutiny?
     
  6. Doug Meyer

    Doug Meyer Senior Member

    0
    Sep 13, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Indiana
    Good idea, anyone else have a thought or would like to share their statement?
     
  7. TennMan

    TennMan Junior Member

    0
    Apr 8, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Virginia
    Existing is MPR minimum property requirements
    New is MPS minimum property standards.
     
  8. RSW

    RSW Elite Member

    25
    Feb 18, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Tennessee
    The subject property currenly meets HUD/FHAs minimium property requirements or standards or will meet HUD/FHAs minimium property requirements or standards after the listed repairs are completed.
     
  9. CANative

    CANative Elite Member

    122
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Chose one or the other. If it's new or proposed choose Standards. If it's existing (more than 12 months) choose Requirements.

    They're not the same. So appraiser's should be looking at different handbooks depending on the improvements.
     
  10. sunster

    sunster Junior Member

    7
    Oct 27, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Hey Val, after you list the required repairs in your report, try inserting a line similar to this afterwards:

    "Upon completion of the stated repairs, the subject will conform with minimum HUD/FHA property requirements."

    Should keep those absent minded underwriters off your back.
     
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