Does FHA require a land value if no cost appr?

[JSmith43]

I'm looking at an FHA report without land value. Does FHA require land value break-out if an appraiser doesn't perform a cost approach.

 

[Thomas Fiehler]

I've always had to report the site value. Sounds like he/she worked to fast!

 

[CANative]

No. For FHA/HUD an opinion of site value is not required when the cost approach is not developed. (per several phone conversations with staff at SAHOC, one of which was with a forum favorite)

The only reason I include an opinion of site value for anyone else is because the requirement is still in the Fannie Mae selling guide.

 

[Liz Mura]

FHA Class

Not required, per the class I took last week on FHA requirements.

 

[Brad Pack]

..................

 

[Greg Bell]

HUD REO'S require site value..

 

[Kenneth Reynolds]

Greg is there a source for the requirement for site value for bank owned FHA appraisals? I'm a new FHA guy who has never performed an FHA appraisal and need every source I can find to get up to speed. I've read the Handbook and Appendix D. Just don't recall seeing the requirement for site value addressed anywhere.

 

[Greg Bell]

Ken..I do HUD REO'S , about 10 a month and it is required.Keep in mind that the HUD REO market is it's own beast and may not pertain to the real world.

 

[Greg Bell]

P.S.No cost approach , just site value..

 

[Brad Pack]

P.S.No cost approach , just site value..

Mr. Bell -

Please cite the regulation/guidance via handbook, Mortgagee Letter, CFR or FAQ, that supports your claim.

Mr. Reynolds -

I appreciate/respect your attempt to get "up to speed" on FHA appraisal issues. May I suggest that you go straight to the source to ensure that you obtain the correct information. (800) CALL- FHA will connect you with the FHA resource center. If their answer does not satisfy you, request to speak with someone in the Technical Support (Appraisal) Branch.

Good luck.

Bradley A. Pack
Chief (Appraiser)
Technical Support Branch
U.S. Department of Housing and Urban Development
Santa Ana Homeownership Center