FHA Detached Site Condo property - is it still a Lender's choice on what form to use?

[MMing5000]

A Lender used to have the choice of deciding whether a detached site condo dwelling should be appraised on the Condo Form 1073 or the URAR Form1004 based on factors such as whether the property has any mandatory monthly HOA fees, whether there is a shared driveway or other common elements, or whether the property was originally converted from a multi-dwelling property... does anyone know whether FHA still allows the Lender to choose the appropriate appraisal form for detached site condo properties, or is it now mandatory to use the Condo Form 1073 on all detached site condo properties? Any provided references will be greatly appreciated.

 

[Addie]

You have different questions. Needs to be worded differently. But your answer is still known.

FHA allows 1004 for site condos or 1073. They don’t care.

Lender?????

Appraiser????

That’s up to you all and your SOW et al that you made with your client.

Appraiser says they have all the template for a 1004 so they can do it in 30 minutes, lender says wants on a 1073....appraiser fights back because their 1073 template isn’t set up/or not used to a 1073 form.....that’s on you all to fight out.

You know that you too. Hahaha

 

[Restrain]

The answer is that it depends on whether it has a defined site and is a condo. It can be detached but not have a defined site -1073. If detached and has a defined site but is a condo, it goes on the 1004 because of the defined site. The 1073 does not allow for a defined individual site.

 

[gregb]

You have different questions. Needs to be worded differently. But your answer is still known.

FHA allows 1004 for site condos or 1073. They don’t care.

Lender?????

Appraiser????

That’s up to you all and your SOW et al that you made with your client.

Appraiser says they have all the template for a 1004 so they can do it in 30 minutes, lender says wants on a 1073....appraiser fights back because their 1073 template isn’t set up/or not used to a 1073 form.....that’s on you all to fight out.

You know that you too. Hahaha

Prove it that FHA allows a site condo to be reported on the 1004. Where is your citation from HUD and FHA?

Page 51. https://www.HUD.gov/sites/documents/11-22MLGUIDE.PDF

3.14 Site Condominiums (pg. 51 ) of (Condominium Project Approval and Processing Guide) states:

Although not subject to the general condominium approval requirements, the applicable ADP codes for Site condominiums are 731 (Adjustable Rate Mortgages) and 734.
Appraisal data is collected and reported on Fannie Mae form 1073, Individual Condominium Unit Appraisal Report.
The Condominium Rider (Appendix G) must be included in the FHA case binder submitted for insurance endorsement.

 

[MMing5000]

Prove it that FHA allows a site condo to be reported on the 1004. Where is your citation from HUD and FHA?

Page 51. https://www.HUD.gov/sites/documents/11-22MLGUIDE.PDF

3.14 Site Condominiums (pg. 51 ) of (Condominium Project Approval and Processing Guide) states:

THANK YOU GregB ... you're the man!

 

[SJFCenTex]

If its a condo doesn't matter if it is a site condo or not, If it is condominium style ownership FHA wants it on a 1073, save your self the hassle of converting forms and put every condo on a 1073. Its a lot easier to defend a condo on a 1073 than on a 1004 and in my opinion a 1073 is easier to fill out than a 1004 anyways.

 

[glenn walker]

I just use the 1073 because otherwise you will most likely end up having to convert to it anyway -- I have to check with our UD but FHA used to allow either form but I believe they now want them on the 1073.

 

[Mr Rex]

1073 see page 482 of 4000.1

 

[MMing5000]

1073 see page 482 of 4000.1

Straight forward enough - so the question is why would a Lender request a site condo property to be prepared on the URAR for an FHA appraisal assignment?

 

[Tim The Enchanter]

Clip from Gregb's doc. Imho if it does meet this definition it should not be classified as a condo. Which I have ranted about before. /rant