Does Ac Require To Repair On Conv Loan?

[mle0318]

Do I need to subject to the appraisal when AC is not working as the time of appraisal? This is Conv loan, not FHA. I try to search up Fannie Mae guideline but not able to find anything on it. Any help would be appreciated.

 

[timd354]

Do I need to subject to the appraisal when AC is not working as the time of appraisal? This is Conv loan, not FHA. I try to search up Fannie Mae guideline but not able to find anything on it. Any help would be appreciated.

No

 

[mle0318]

No

Can you pin point me where in the guideline say that?

 

[Deleted member 128537]

AC is not necessary for livability. If the AC isn’t working, just don’t give it value. Lots of homes don’t have AC.

 

[timd354]

Can you pin point me where in the guideline say that?

The Fannie Guidelines state the following: If the appraiser reports the existence of minor conditions or deferred maintenance items that do not affect the safety, soundness, or structural integrity of the property, the appraiser may complete the appraisal “as is” and these items must be reflected in the appraiser’s opinion of value.

I don't think that a broken air conditioner affects safety, soundness or structural integrity and I will leave it to you to figure out where in the Fannie Selling Guide it states that - it should not take you more than 1 minute using the search function in allregs.

 

[mle0318]

The Fannie Guidelines state the following: If the appraiser reports the existence of minor conditions or deferred maintenance items that do not affect the safety, soundness, or structural integrity of the property, the appraiser may complete the appraisal “as is” and these items must be reflected in the appraiser’s opinion of value.

I don't think that a broken air conditioner affects safety, soundness or structural integrity and I will leave it to you to figure out where in the Fannie Selling Guide it states that - it should not take you more than 1 minute using the search function in allregs.

Thank you

 

[Howard Klahr]

Is is not working due to age/condition of the unit i.e. does it need to be replaced? Or is it just in need of repair?

While a/c is not a minimum property requirement (in most market areas), buyers do expect a working a/c if one is installed. Do your comps have working a/c?

 

[Evincere]

No heat in the North. Fireplace, furnace should be in working order.
No AC in the South with high, often stifling humidity . Fans or wall Units should work.

So as to your question and adjustments. It all depends on Borrowers and market expectations.

 

[timd354]

No heat in the North. Fireplace, furnace should be in working order.
No AC in the South with high, often stifling humidity . Fans or wall Units should work.

So as to your question and adjustments. It all depends on Borrowers and market expectations.

No it does not. The appraisal does not need to be made "subject to" because of a broken a/c unit because that does not affect the safety, soundness, or structural integrity of the property.

However, an adjustment to the comps (that have working A/C) may be required to reflect market reaction/expectations.

 

[Evincere]

No it does not. The appraisal does not need to be made "subject to" because of a broken a/c unit because that does not affect the safety, soundness, or structural integrity of the property.

However, an adjustment to the comps (that have working A/C) may be required to reflect market reaction/expectations.

Where did I say Appraisal needs to be made “Subject to”