"as Is" Versus "subject To"

[Meandering]

B4-1.3-06: Property Condition and Quality of Construction of the Improvements (04/15/2014)
Published December 6, 2016

Identifying Property Condition
As previously noted, the Condition rating selected for the property must reflect a holistic view of the condition of the property improvements. It would be inappropriate to select either a lower or higher overall rating on the basis of one or two minor inferior or superior areas of the property improvements. However, the C6 rating is an exception because it indicates that the property is impacted by one or more deficiencies that negatively affect the safety, soundness, or structural integrity of the property. As a result, if any portion of the dwelling is rated a C6, the whole dwelling must be rated a C6.

Properties with a Condition Rating of C6 are eligible for sale to Fannie Mae provided any deficiencies that impact the safety, soundness, or structural integrity of the property are repaired prior to delivery of the loan. See Physical Deficiencies That Affect Safety, Soundness, or Structural Integrity of the Subject Property in this topic for information related to completing appraisals on properties with safety, soundness, or structural integrity deficiencies

Appraisal Completed “As Is”
Condition Ratings C1, C2, C3, C4, and C5 as previously defined are eligible for delivery in “as is” condition. Properties with the initial Condition Rating C6 indicate one or more deficiencies that impact the safety, soundness, or structural integrity of the property. Therefore, the appraisal must be completed subject to completion of the deficient item(s).

See Physical Deficiencies That Affect Safety, Soundness, or Structural Integrity of the Subject Property in this topic for additional details when completing appraisals on properties with safety, soundness, or structural integrity deficiencies.
https://www.fanniemae.com/content/guide/selling/b4/1.3/06.html

The underwriter is considering the garage a C6?


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[Gregory Beck]

This is the first time I have ever heard of a garage with a dirt floor in a suburban neighborhood.

 

[RSW]

This is the first time I have ever heard of a garage with a dirt floor in a suburban neighborhood.

Some of the old historic homes in Knoxville used to have carriage houses that were converted into detached garages. Those properties are actually considered to be urban.

 

[glenn walker]

Sounds like you have a property with a storage shed ** not a real usable garage ** I would imagine in Colorado with snow and Ice a dirt floor is not usable . As far as curing the issue how is the owner going to pour a concrete slab under an old junk garage ? Sounds like the garage ( shed is a tear down )

 

[Mike Garrett RAA]

Just did a $300,000 residence that has a 1 car detached garage with dirt floor. I would make a condition adjustment and let it go. Would not even suggest "cost to cure" in your case.