Economic Life

[incognito]

Heck, if divisibility is the issue, I'll take 144!

 

[Joyce Potts]

What about properties that are being bought primarily for their land value alone where the trend is razing the 40-60 year old house in order to re-build a much larger, better quality residence?

Effective age isn't just all about physical depreciation.

Lets face it, most older historic homes that exceed 75 to 100 years or more are the usually are the ones that have been refurbished because they have some 'historic' appreciation or significance. In the Central Florida market, I've seen some 30 year old improvements razed because the market wants the location/lot size and the current improvements are under utilizations of their sites.

 

[Michigan CG]

Heck, if divisibility is the issue, I'll take 144!

Does that require an HP12-C?

 

[Richard Carlsen]

Since FHA allows the Estimated Remaining Economic Life to be a number or a range of numbers, simply use a range such as 35-50 years. All they are interested in is that the remaining economic life is as long as the term of the mortgage.

In your additional comments on Page 3 you can do what I do and put the following notation:

The estimate of Remaining Economic Life is the author's best estimate of the continuing present utility of the subject based upon the subject receiving normal required maintenance, repairs and upgrades. This value is expressed as a range of years.

 

[Joyce Potts]

Since FHA allows the Estimated Remaining Economic Life to be a number or a range of numbers, simply use a range such as 35-50 years. All they are interested in is that the remaining economic life is as long as the term of the mortgage.

In your additional comments on Page 3 you can do what I do and put the following notation:

The estimate of Remaining Economic Life is the author's best estimate of the continuing present utility of the subject based upon the subject receiving normal required maintenance, repairs and upgrades. This value is expressed as a range of years.

That's right. We all know for FHA you can't have anything less than 30 years. Even on 20 year old manufactured homes!

 

[RSW]

Heck, if divisibility is the issue, I'll take 144!

That's Gross!

 

[incognito]

Quote:
Originally Posted by incognito
Heck, if divisibility is the issue, I'll take 144!

That's Gross!

I'm embarrassed to say that actually made me laugh! I need a drink and a 3 day weekend! :new_all_coholic:

 

[Fred]

[/u][/i][/b] Now that's good stuff, I don't care who ya are.

You notice the answer?

 

[RSW]

I'm embarrassed to say that actually made me laugh! I need a drink and a 3 day weekend! :new_all_coholic:

You have to have a sence of humor if you are going to survive on this forum.

 

[Mike Boyd]

Since FHA allows the Estimated Remaining Economic Life to be a number or a range of numbers, simply use a range such as 35-50 years. All they are interested in is that the remaining economic life is as long as the term of the mortgage.

In your additional comments on Page 3 you can do what I do and put the following notation:

The estimate of Remaining Economic Life is the author's best estimate of the continuing present utility of the subject based upon the subject receiving normal required maintenance, repairs and upgrades. This value is expressed as a range of years.

I agree with Richard. Back when FHA had training sessions they told us that if a house would stand up for 5 more years to indicate that the remaining life was 40 years.

Now, if the property is in a transitional state-----where adjacent and/or nearby properties are changing from residential to something else, only then do I think it could be an issue.

Only FHA (and VA?) require the remaining economic life. So, why worry about Fannie and freddie loans?