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Another stupid stip

Overimprovement

Thread Starter
Senior Member
Joined
May 31, 2017
Professional Status
Certified Residential Appraiser
State
Kentucky
I'm about to be done with this AMC, as garbage like this is increasing:

"This is an FHA sale quality must be at least Q4 please revise and add
commentary if repairs are needed to go from Q5 to Q4."

There goes FHA financing for 80% of my market area!!
 

Dublin ohio

Senior Member
Joined
Mar 20, 2008
Professional Status
Licensed Appraiser
State
Ohio
I'm about to be done with this AMC, as garbage like this is increasing:

"This is an FHA sale quality must be at least Q4 please revise and add
commentary if repairs are needed to go from Q5 to Q4."

There goes FHA financing for 80% of my market area!!
Idiots. Tell them it will take a wrecking ball and rebuild.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
I'm about to be done with this AMC, as garbage like this is increasing:

"This is an FHA sale quality must be at least Q4 please revise and add
commentary if repairs are needed to go from Q5 to Q4."

There goes FHA financing for 80% of my market area!!
ARE YOU CONFUSING Condition ratings with quality of construction ? Condition ratings are typically on C-3- C-4 and a C-5 is a fixer. The Quality of construction ratings are say Q4-Q5 etc BUT even bare bones tract home construction will meet a Q4 which is basic cheap builder stock . Anyway go back and look- If your FHA under condition is rated a C-5 then it will not meet FHA MPR until brought it's brought up to a C-4. Many of my FHA are done C-4 "subject" to repairs being completed and it meets FHA MPR. YOU MAY have confused Condition ratings and quality of construction but a Q4 meets almost all basic construction. P.S this is not a FHA issue Fannie-Freddie also do not fund C-5 or C-6 properties until they have been repaired.
 
Last edited:

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
C5 is eligible for GSE's. No idea about FHA.
I do not know any major lender that funds C-5-- I know we sell to Fannie-Freddie-FHA-and they will not pass the scoring system and are considered extremely high risk properties . A C-5 is normally really bad- and this is not an AMC issue. If it can be broght up to a C-4 then you should have made a list of repairs to bring it up to a C-4. If its a real C-5 its dead on arrival and nobody is buying the loan and don't worry that AMC is not calling you again - Make sure you read the condition ratings a C-5 is really-really bad not minor issues-Many borderline C-5s can easily go C-4 with some repairs.
 

Overimprovement

Thread Starter
Senior Member
Joined
May 31, 2017
Professional Status
Certified Residential Appraiser
State
Kentucky
I am not confusing anything. The AMC is. My quote came directly from the AMC.

This is a quality not condition request.

My guess is this is another new reviewer who is confusing Q6 with Q5.
 

Overimprovement

Thread Starter
Senior Member
Joined
May 31, 2017
Professional Status
Certified Residential Appraiser
State
Kentucky
The condition of the home is C3 BTW.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
They are confusing quality ratings with condition ratings. Q5 is comparative to Fair construction quality rating in the Marshall & Swift RCH and perfectly acceptable for almost all lenders. If their logic was true, the could not loan on manufactured homes with lower cost factors than Q5 (fair) cost factors. Also, what about modular construction housing that most likely would fall under Q5 with its lower quality of construction and costs?
 
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