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FHA Appraisal on new construction.

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Saffel

Freshman Member
Joined
Jun 5, 2008
Professional Status
Certified Residential Appraiser
State
Washington
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

Senior Member
Joined
Feb 23, 2004
Professional Status
Licensed Appraiser
State
Oregon
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

Freshman Member
Joined
Jun 5, 2008
Professional Status
Certified Residential Appraiser
State
Washington
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

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
The appraiser does not do the final inspection on a new construction.
 

Jerry Bone Jr

Senior Member
Joined
Feb 23, 2004
Professional Status
Licensed Appraiser
State
Oregon
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

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
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.
 

Saffel

Freshman Member
Joined
Jun 5, 2008
Professional Status
Certified Residential Appraiser
State
Washington
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

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
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
 
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