Help With VA Appraisal (in Law Apartments - Railings, Paint Etc

[Mena22]

It is an interesting situation, and it would be difficult to say exactly how the appraiser will approach this. The single family appraisal form (FNMA 1004) only allows for 1 additional accessory unit. Prior guidance from the VA, if the property has more than 1 accessory unit, the appraisal should be completed on the small income residential form (FNMA 1025) which allows 2-4 units. That particular form calculates total building area, not just above grade living area, so the area will include both levels of your home. But the area will be itemized and the area/bedrooms will be analyzed on a per unit basis, not in the aggregate. Having said that, ideal comps would still be the same regardless of the format or which appraisal form is used. Ideally the comp selection would be similar homes with accessory units attached or in the basement. Of course this will be dependent on what is available in the market.

Ok but what if there is no accessory unit listed on the occupancy report? Per the town this house is listed as a five bedroom with 4.5 bath even though it looks like there are two apartments. Per the occupancy report it is zoned as a one family and no mention of accessory units. If that all makes sense. Thanks so much for your help!

Like I think in order to make it a 3 bedroom 2.5 bath with an accessory unit (can only have one) we would have to apply for a permit.

Now that it is off the market it is showing up as a 5 bedroom 4.5 bath one family house with no accessory units. I wish I had the occupancy report with me right now to explain better. thanks again!

 

[Mena22]

On the other hand, if the units cannot be classified as "accessory units" then you just have a single family home with a finished basement. Much easier for the appraiser that way, but income potential will not be considered in the valuation.

This is what I am hoping since there is no accessory units listed on the occupancy report and it actually states one family - five bedrooms 4.5 bathrooms. NOT three bedrooms, 2.5 bathrooms with two accessory units. However, the appearance of the two "bedrooms" physically look like apartments but it is not zoned that way. We don't need the income potential to be factored in to get the loan we just need it to appraise for enough to secure the amount of our loan. If the appraiser looks at comps with two accessory dwellings I think we are screwed as there would be no comps to compare but if its looked at comps for what it is zoned for I think we are ok. I hope I'm making sense here! Thanks so much!

 

[Mena22]

I hope this is making sense. Basically the house was approved to be build this way as the original blueprints included these two "apartments" however it is not zoned this way. I have no clue really what I am talking about though just know that on the occupancy report it is listed as a one family - having five bedrooms, 4.5 bathrooms and NOT one family 3 bedrooms 2.5 bath with two accessory units. I just am hoping the appraiser looks at comps in the area that are for the 5 bedrooms 4.5 bathrooms and not ones with accessory units as that will not be good at all. If he looks at what it is legally zoned for 5 bedrooms 4.5 baths we are in good shape as houses go for way more than we are getting the house for. Even though appearance wise it looks like two separate apartments. So sorry this is a special snowflake situation. I appreciate all your help here! I'm just so nervous about the appraisal!

 

[Eli]

Call your VA regional loan center. They exist to help you. Thank you dearly for your service!

 

[Mena22]

Call your VA regional loan center. They exist to help you. Thank you dearly for your service!

Thank you. Is there a resource for that number? Or just google? Thanks again!

 

[Eli]

You can find it probably as quick as me. Yeah! Google: regional loan center VA for your state. They will love you!!!!

Let your appraiser know too what they tell you.

 

[Mena22]

Call your VA regional loan center. They exist to help you. Thank you dearly for your service!

Just called and got a live person who I thought was in the appraisal department however, they transferred me to someone who was not available and I had to leave a message. Grrrrr....

 

[Mena22]

You can find it probably as quick as me. Yeah! Google: regional loan center VA for your state. They will love you!!!!

Didn't see this as I just replied to your earlier comment. Had to leave a message for someone to get back to me. I wanted to find out more information before the inspection tomorrow as I don't want to be stuck paying $450 for the inspection when the appraisal may come back with using comps for a home with two accessory apartments. Any input on my previous responses?

I'm hoping and praying the appraiser uses comps for similar sales of 5 bedroom 4.5 baths in that area as they go for much higher than we are getting the house for. This is what the home is zoned as a one family with 5 bedrooms 4.5 baths. However, the physical appearance has the upstairs with 3 bedrooms 2.5 baths then downstairs there are two "bedrooms" with kitchen area, living room, full bath and the bedroom. So the physical appearance of everything would be a house with 3 bedrooms 2.5 baths with two accessory units however that is not written on the actual occupancy report. Am I making sense? It is a special snowflake situation for sure I'm just wondering if you had any input. I think we are screwed for price wise if the appriser is looking at comps for two accessory units as that is very unique and I don't think we will obtain a high enough price for the actual loan amount. If they compare comps for the five bedrooms like it is zoned for we should be all set. Thanks so much for your time!

 

[Eli]

Didn't see this as I just replied to your earlier comment. Had to leave a message for someone to get back to me. I wanted to find out more information before the inspection tomorrow as I don't want to be stuck paying $450 for the inspection when the appraisal may come back with using comps for a home with two accessory apartments. Any input on my previous responses?

I'm hoping and praying the appraiser uses comps for similar sales of 5 bedroom 4.5 baths in that area as they go for much higher than we are getting the house for. This is what the home is zoned as a one family with 5 bedrooms 4.5 baths. However, the physical appearance has the upstairs with 3 bedrooms 2.5 baths then downstairs there are two "bedrooms" with kitchen area, living room, full bath and the bedroom. So the physical appearance of everything would be a house with 3 bedrooms 2.5 baths with two accessory units however that is not written on the actual occupancy report. Am I making sense? It is a special snowflake situation for sure I'm just wondering if you had any input. I think we are screwed for price wise if the appriser is looking at comps for two accessory units as that is very unique and I don't think we will obtain a high enough price for the actual loan amount. If they compare comps for the five bedrooms like it is zoned for we should be all set. Thanks so much for your time!

Go ahead and call the appraiser too with your concerns. They may be able to get through to VA quicker. Idk that but call the appraiser.

Do not be shy with the appraiser! Be just like you have been here.

 

[Mena22]

Also another question. Sorry. For our inspection tomorrow, we are using someone who is familiar with VA appraisals. Would he be able to guide us and recommend things to do (if needed) prior to the appraisal? I don't want things to be wrong and have to repay for the appraiser to come back out. Thanks so much everyone! This is my dream house and I'm so sick with anxiety over this whole process. Thanks again!