FHA Appraisal on new construction.

[Saffel]

When doing and FHA appraisal on a property that is new construction ie. subject to the completion per plans and specs. do I just assume that eveything on the property will be FHA compliant.

When I go back and take care of the completion cert. I then can go through the home and take care of a propert FHA inspection.

I have been doing FHA appraisals only for about 8 months or so but have yet to do one on a incomplete home.

Thanks in advance.
-GS

 

[Jerry Bone Jr]

Yes, you assume it will meet the FHA guidelines. It might even be an extraordinary assumption. Either way it needs to be addressed in the report.
BTW: Welcome to the forum.

 

[Saffel]

Thanks, Thats what I figured. Then just take care of the "official" FHA inspection when I take care of the completion cert? All of the systems will be in place at that point.

 

[RSW]

The appraiser does not do the final inspection on a new construction.

 

[Jerry Bone Jr]

Thanks, Thats what I figured. Then just take care of the "official" FHA inspection when I take care of the completion cert? All of the systems will be in place at that point.

Yes, that's exactly right. I always make sure to mention that the elec, water, gas, etc. should be "on" a full day prior to my re-inspection.

 

[RSW]

When doing and FHA appraisal on a property that is new construction ie. subject to the completion per plans and specs. do I just assume that eveything on the property will be FHA compliant.

When I go back and take care of the completion cert. I then can go through the home and take care of a propert FHA inspection.

I have been doing FHA appraisals only for about 8 months or so but have yet to do one on a incomplete home.

Thanks in advance.
-GS

You should be adding the follow comment in your report:

The subject property currently meets FHA minimum standards or will meet FHA minimum standards upon completion of the identified repair items.

 

[Marcia Langley]

Completion items.

 

[RSW]

Completion items.

That would work too!

 

[Saffel]

Thanks to all who responded. It's nice to have a place to "bounce" and affirm what I thought was the correct way to handle this situation.
-GS

 

[timd354]

For FHA new construction, the appraiser must be given a copy of the HUD form 92541 prior to the inspection of the property. Here is the link to that form http://www.HUD.gov/offices/adm/hudclips/forms/files/92541.pdf

I would strongly suggest that you also check out this page which gives you an overview of FHA requirements for new construction: http://www.HUD.gov/offices/hsg/sfh/ref/sfhp1-08.cfm