Six Month Rule?

[Murray Bloom]

Is there still an FHA rule that if a property was appraised for an FHA loan within the past six months, the lender MUST use that appraisal rather than ordering a new one?

 

[Michael Tipton]

Is there still an FHA rule that if a property was appraised for an FHA loan within the past six months, the lender MUST use that appraisal rather than ordering a new one?

2-9 TERM OF APPRAISAL.
A. Term.​

​

The appraisal has a term of six months for existing construction
and 12 months for proposed construction. However, if the appropriate
HOC determines that soft market conditions exist in certain areas or
markets, it may shorten the term of appraisals for proposed construction
and substantial rehabilitation to a period of less than 12 months upon
advance notice to lenders. The term of the appraisal begins on the day the
home is inspected by the FHA appraiser and this date appears on the
URAR.​

B. Re-Use.​

​

Appraisals cannot be re-used after the mortgage for which the
appraisal was ordered has closed. For example, an appraisal used for the
purchase of a property cannot be used again for a subsequent refinance,
even if six months has not passed. A new appraisal is required for each
refinance transaction requiring an appraisal.​

C. Extensions.​

​

If a borrower signs a valid sales contract or is approved for a
loan prior to the expiration date of the appraisal, the term of the appraisal
may be extended, at the option of the lender, for 30 days to allow for the
approval of the borrower and closing of the loan. Approval of the
borrower occurs when the lender’s DE underwriter signs the Mortgage​

Credit Analysis Worksheet, Form HUD-92900-WS/92900-PUR.

 

[Murray Bloom]

Thanks, Mike.