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2nd Building On Property

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Kevin Darland

Freshman Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Kentucky
Well, I have been doing FHA's for over 1 year now, and I have came upon a new one for me.....the subject has a detached building that is being used for her dog grooming business. Is this even allowed under FHA guidelines and if so, will I need to find sales with 2 comparable buildings on each property??? This one is going to drive me to drink... :beer:
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Do you have the HUD/FHA Handbook? If not, it's available on line and the link is here somewhere. I'd have to go look it up, so that's probably what you'll have to do.

With refis, you write up the VC the same as you would for a purchase and the UW makes the decisions regarding what repairs to require.

No matter what, you will need to disclose what is actually there. You could complete the appraisal as a "Hypothetical" that the outbuilding is not there and given no value.
?
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Kevin,

As I recall, the Handbook says non-residential use MAY be okay as long as it does not detract from the overall residential appeal of the subject property. Is the zoning legal and permissable? Check the Handbook for the actual wording. Also, talk to the underwriter to see if they are aware of the situation and see if they have any guidance for you. Good luck, sounds like fun!
 
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