Condo Appraisal On 1004

[deturner]

I have been asked for the first time to do a condo appraisal on the 1004 form. Is there any special addendums required for this?

I see that the software has an addendum for this purpose but the addendum is asking for all this information for the HOA (financial data).

I have not been able to locate any guidelines that say "The following addenda are required for a condo performed using the 1004 form".

Thanks,
Dave in NC

 

[Pamela Crowley (Florida)]

Call and ask your client what they really want.

Typically, at least in my experience, the Individual Condominium Unit Appraisal Report (Condo/PUD in Alamode) Fammie Mae Form 1073. This form has additional Condo/Pud information sections but not quite as bad as the Condo/PUD Addendum.

 

[deturner]

I know FNMA will allow the 1004 as long as enough information is provided to explain the PUD. I did ask the client and they stated to use the 1004 so I'll just add the typical stuff about the complex to my addendum.

Dave in NC

 

[Pamela Crowley (Florida)]

Make sure you charge them if they change their mind after the fact!

 

[Scott FL]

Use the condo form or be prepared to redo it.

The loan officers are sometimes confused about the forms and when it gets to underwriting you'll be changing it.

 

[Frederick R. Ruffell]

Deturner,
Well which is it a Condominimum ownership or a PUD????? Can not help you if you are unclear as to property type.

Furthermore,


XI, 203.01: Manually Underwritten Mortgages (06/30/02)

We have five different appraisal forms that can be used for manually underwritten mortgages, depending on either the type of property being appraised or the type of mortgage that is secured by the property. The appraiser must use our latest version of one of the following forms and include any other data -- either as an attachment or addendum to the appraisal report form -- needed to adequately support the opinion of market value:

• Uniform Residential Appraisal Report (Form 1004), for one-family properties and units in planned unit developments (including those that have an illegal second unit or accessory apartment that we will consider as acceptable security) that secure either first or second mortgages. Form 1004 may also be used for two-family properties, if each of the units is occupied by one of the co-borrowers as his or her principal residence or if the value of the legal second unit is relatively insignificant in relation to the total value of the property (as might be the case for a basement unit or a unit over a garage). In addition, appraisals for units in condominium projects that consist solely of detached dwellings may be documented on Form 1004, if the appraiser includes an adequate description of the project and information about the owners' association fees and the quality of the project maintenance;

• Small Residential Income Property Appraisal Report (Form 1025), for two- to four-family properties (including those that are located in PUD projects);

• Individual Condominium Unit Appraisal Report (Form 1073), for one-family properties that are units in condominium projects;
• Individual Cooperative Interest Appraisal Report (Form 1075), for one-family properties that are units in cooperative projects; or

• Desktop Underwriter Quantitative Analysis Appraisal Report (Form 2055), for one-family principal residences and second homes (including units in condominium and PUD projects), provided the appraiser [Page : 1116 06/30/02] inspects both the interior and exterior of the property. (If the property secures a Streamlined Purchase Money Mortgage Option 1, only the exterior of the property needs to be inspected.)

Now if your client has specifically instructed you to not adhere to FNMA guidelins as supplemental guidelines (supplemental to USPAP) then you may be able to pull it off with alot of addendum writing. I think HUD/VA used to or still does accept it it on the URAR 1004 as the form does have a check box for Condominium with "(HUD/VA only)", operative word ONLY. So if it is for HUD or VA then go ahead complete.

 

[Mike Boyd]

MANY LOAN OFFICERS and loan processors do not know the difference between a condo and a pud unit. Some appraisers don't know the difference although they should. Most real estate agents don't know. Many assessor maps might show it as a condo complex although it is a pud. To know for sure, you need to see the legal description. Or, ask the title officer if it will be insured as a condo or as a pud.

If you know without a doubt that it is a condo, do it on the condo form irrespective of what the lender has requested. FHA allows the use of a 1004 for a condo but also allows the use of the condo form. Do it the right way by using the condo form and save yourself additional work.

Mike

 

[Pamela Crowley (Florida)]

Hi Mike Boyd!

I miss your posts because they are always right on. How's retirement treating you?

 

[Mike Boyd]

Hi Pamela,

Retirement? I should be so lucky! While I am not inspecting houses for the purpose of appraisal, I still consult with my sons who have taken over my practice. I look at 1 or 2 reports a day. In addition, I am selling a little real estate and originating a few loans. I am usually in my office between 830 and 9 every morning and go home before 5. I am working late tonight because I got on the forum to read and comment on new posts. I work a half day on Saturday but Sunday I reserve for football. Occasionally, I will take an appointment on Sunday to show a specific property.

However, not inspecting houses or buried in paper work is almost like being on vacation! I need my youngest son to get his real estate license so that I can semi retire again and do some more work on my book. Maybe I can finish that one day.

Mike

 

[Jo Ann Meyer Stratton]

I join in the welcome back! Is Greg one of the sons? Or another clan?