I did a FHA condo and the underwriter is asking for the estimated reamianing economic life. I did explain that this is a condo on the 1073 form, and why we do not address that for condos and they now say they will not fund without it and my LO is crying. Has anyone come across this before?
Thanks
The underwriter is correct: Here is the relevant section of the HUD handbook 4150.2:
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4-3[/FONT]
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4150.2[/FONT]
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- endanger the physical improvements[/FONT]
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- affect the livability of the property or its[/FONT]
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marketability[/FONT]
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- affect the health and safety of its occupants[/FONT]
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> If any of these conditions exist, recommend correction[/FONT]
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of the problem or rejection of the property and explain.[/FONT]
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(4-2)[/FONT]
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For more information, see Chapter 2-2 of this Handbook.[/FONT]
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o The appraiser must determine if the subject property[/FONT]
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possesses sufficient remaining economic life to warrant a[/FONT]
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long-term mortgage, assuming a reasonable level of continued[/FONT]
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maintenance. If the property does not warrant a long-term[/FONT]
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mortgage it will be ineligible for FHA mortgage insurance.[/FONT]